Michael Stern and David Martin Buy Out Miami Beach Condo for $120M

A joint venture led by developer Michael Stern bought out a waterfront condo building in Miami Beach for about $120 million with plans to redevelop it into a luxury property, The Real Deal reported. 

The 15-story building, called Bay Garden Manor, sits on a 1.9-acre site facing Biscayne Bay at 1250 West Avenue. The 238-unit property is just south of the Monad Terrace condo complex designed by French starchitect Jean Nouvel, which Stern’s JDS Development completed in 2021.  

Stern has partnered with David Martin’s Terra, Gianluca Vacchi’s GV Development and RG Development for the new project. 

Over the summer, Miami Beach officials approved the development team’s plans to build a tower up to 330 feet tall — more than double the height that current zoning laws permit. In return, the developers reduced the density to a maximum of 125 condos, down from the 286 units allowed. 

In another concession to the city commission, the development team agreed to buy the Bikini Hostel across the street and redevelop it into a public benefit, likely a park. The hostel has been a homeless shelter since last year. 

Condo buyouts, which are notoriously difficult to close since they require the approval of most owners in a building, have become more common following the deadly collapse of the Champlain Towers South condo building four years ago in Surfside. State reforms instituted this year mandate that condo owners complete inspections and begin saving up for costly structural repairs. Instead of paying up, some have opted to sell to developers. 

In another example of a buyout, Mast Capital and BH Group bought the majority of units at a waterfront condo building in Coconut Grove, with plans to redevelop it into a luxury condo property.

Representatives for JDS and Terra did not immediately respond to requests for comment, while spokespeople for GV and RG could not be reached for comment.

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