Kolter and BH Seek to Flip Oceanfront Miami Beach Hotel for $110M
Terra’s redevelopment of former Deauville Beach Resort moves forward
By Julia Echikson February 5, 2025 3:59 pm
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Developers Kolter Group and BH Group have decided to sell an oceanfront hotel in Miami Beach for $110 million rather than redevelop the site. The decision also comes as Terra’s nearby redevelopment of the historic former Deauville Beach Resort nabbed a key approval this week.
Kolter and BH’s 1-acre parcel sits at 6985 Collins Avenue, a block south of the outdoor Bandshell music venue and half a mile north of the old Deauville resort. The North Miami Beach property houses the 84-room Crystal Beach Suites Miami Oceanfront Hotel, completed in 1950.
Offering 150 feet of beach frontage, the parcel is zoned for the development of a 138,924-square-foot structure that could rise 200 feet tall and feature 150 units.
Berkadia’s Roberto Pesant, Omar Morales, and Yoav Yuhjtman have the sale assignment. The joint venture purchased the Crystal Beach hotel for $24 million two years ago, according to property records.
It’s unclear why Kolter Group and BH Group, two prominent South Florida developers, want to sell the hotel property. The market for new condos remains strong while older condominium buildings face skyrocketing renovation and maintenance costs due to reforms passed after the deadly collapse of the Champlain Towers South building in 2021. Representatives for Kolter and BH declined to comment.
Nearby redevelopment projects include the former Deauville Beach Resort at 6701 Collins Avenue. This week, the Miami Beach Planning Board approved the redevelopment project, which includes a partial replica of the MiMo-style building that was demolished in 2022, and two additional towers, which would house 100 condo units and 150 hotel rooms.
The owners, David Martin’s Terra and the Meruelo family, are seeking to boost the allowable building footprint of the 3.8-acre site to permit a 916,000-square-foot development.
The project, designed by Foster + Partners, Shulman + Associates and ODP, heads to the Miami Beach Commission in March for approval. The joint venture plans to break ground in 2026.
Update: The story was updated to include the names of additional Berkadia brokers.
Julia Echikson can be reached at jechikson@commercialobserver.com.
