Israeli Bank Lends $20M on Related’s Diplomat Resort Parcel Buy
By Julia Echikson August 17, 2023 5:27 pm
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Related Group and BH Group have secured a $20 million acquisition loan from Bank Hapoalim for the purchase of a waterfront site at the Diplomat Beach Resort in Hollywood, Fla., where the partners plan to build a condo tower, property records show.
The joint venture paid $30 million for the parcel between 3210 and 3690 South Ocean Drive earlier this week. In June, Hollywood officials approved plans to build a 38-story condo tower with 350 units on the site, next door to the hotel’s six-story parking garage and retail component.
Trinity Investments and Credit Suisse Asset Management bought the 1,000-room resort complex in February for $835 million, the largest hospitality sale in the country since the start of the pandemic.
Trinity and Credit Suisse initially partnered with Related and BH to develop some of the vacant land on the 10-acre property, located on a barrier island bordered by the Intracoastal Waterway and Atlantic Ocean.
But now, it appears that the hotel owners have chosen to do away with most of the resort’s undeveloped parcels. A second lot — where Related and BH got approval for a 43-story hotel with 500 rooms — is also under contract, according to The Real Deal, which first reported the $30 million sale.
Related, Miami’s largest condo developer, and BH, led by Isaac (Yizhak) Toledano, often partner on development projects. Most recently, the duo bought a 3.7-acre oceanfront plot for $47.5 million in Pompano Beach, Fla., where a two-tower condo project is planned.
The pair also paid $51 million for an office building near the Aventura Mall last year, where they plan to add a mixed-use development.
Julia Echikson can be reached at jechikson@commercialobserver.com.
