South Florida Luxury Rental Secures $225M From J.P. Morgan and Monroe Capital

PPG Development and BH3 Management have raised $225 million to refinance a luxury rental tower in Hallandale Beach, Fla., the joint venture announced.

The debt from J.P. Morgan and Monroe Capital covers the 250-unit Slate Hallandale Beach property at 101 Diplomat Parkway, about a half mile west of the ocean. The Kobi Karp-designed building includes more than 30,000 square feet of amenities, such as a gym, a spa, a pool, a golf simulation room, a movie screening room, a wine cellar and shared offices.

The property is fully leased, with apartments ranging between 859 and 3,230 square feet, according to a representative for the joint venture. Monthly rents range between $3,459 and $10,406, per Apartments.com.

In 2018, PPG Development and Premium Capital Resources purchased the 5-acre site for $43.2 million and secured a $100 million construction loan from Related Companies the following year, property records show. Hallandale Beach sits roughly midway between Miami and Fort Lauderdale.

Upon completion of the 796,330-square-foot building in 2022, BH3 Management purchased a 50 percent stake for an undisclosed amount. That same year, the 26-story tower was refinanced with $50 million from Arbor Realty, per records.

“We saw the potential for this tower to become the address of choice for residents seeking the highest-quality luxury residences in Hallandale Beach,” Daniel Lebensohn, co-founder and co-CEO of BH3, said in a statement. “That’s exactly what has transpired since.”

Faisal Ashraf of Lotus Capital Partners represented Slate Hallandale Beach’s owners in the most recent debt transaction.

Slate Hallandale Beach sits adjacent from the Shell Bay country club, where PPG Development, led by Ari Pearl, is building a luxury and hotel condo property in partnership with The Witkoff Group, whose founder, Steve Witkoff, now serves as President Trump’s Middle East envoy.

Last year, the joint venture secured a $273 million construction loan for the 20-story project from BDT & MSD Partners and once again J.P. Morgan.

Julia Echikson can be reached at jechikson@commercialobserver.com.