Related, BH Group Plan 2-Tower Condo on Chetrit’s Pompano Beach Site
By Chava Gourarie June 9, 2023 12:52 pm
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Development buddies Related Group and BH Group are planning a two-tower condo project on oceanfront land they recently purchased in Pompano Beach, Fla., from New York’s Chetrit Group.
The joint venture between Jorge Perez’s Related and Isaac (Yizhak) Toledano’s BH paid $47.5 million for a 3.7-acre plot at 20 North Ocean Boulevard where Jacob Chetrit, along with local developer Ari Pearl, had been approved to build a mixed-use project back in 2016. The duo purchased the property for $42.5 million in 2009.
The new owners plan a two-tower project with around 380 condos, and some ground-floor retail, though the plans are preliminary. The project could also have a parking podium topped with a pool deck and outdoor space, according to preliminary drawings.
Centennial Bank provided an interest-only $28.5 million acquisition loan for the project, with a 24-month term. “We wanted to allow them enough time to obtain all the necessary approvals for the project,” said Jay Brito, a senior loan officer at Centennial, who executed the deal.
The loan-to-value ratio of 60 percent reflects the new reality in the market, said Brito. “A year ago, on a general basis, we were a little more comfortable with higher leverage. Nowadays, we’ve pulled back on leverage, but we do everything on a case-by-case basis.”
And this case was a winner. “The project itself, from what we understand, will add a tremendous amount of value to the property,” said Brito. “It’s being used by the city as a parking lot for the beach across the street, so it’s obviously going to improve the value of the surrounding areas.” It’s also the local bank’s first transaction with condo juggernaut Related, the biggest multifamily developer in the region and especially active in the Pompano Beach area.
The new condo project is not far from where Related is building two other luxury oceanfront condos — the Solemar at 1116 North Ocean Boulevard, which broke ground in 2021, and the Casamar at 900 North Ocean Boulevard, which broke ground just last month — at a scale that is beyond what the beachfront town has been accustomed to in the past.
But that’s changing fast. Related itself has several more projects coming up in Pompano Beach, which it described as “young and promising,” per a statement from the company.
“Just a few years ago, this submarket was totally overlooked — today it is one of the most exciting in the tri-county region, with many highly anticipated developments as well as a concerted effort from local government to improve community offerings and infrastructure while maintaining its signature beachfront village atmosphere,” the company stated, though it declined to comment on plans for the site.
Chava Gourarie can be reached at cgourarie@commercialobserver.com.
