Kolter Expands Miami Beach Assemblage for Condo Dev With BH Group

Kolter Group and BH Group have expanded their oceanfront assemblage in Miami Beach’s North Beach neighborhood, where they plan to build a 17-story luxury condo development.

In one transaction, Kolter Group bought 10 condo units within the Port Royale Condo at 6969 Collins Avenue for about $3.8 million, property records show. The 14-story structure, built in 1971, has faced concerns over its structural integrity, and in 2022 residents of the 172-unit building were evacuated.

In another deal on the same block, Kolter paid $14.4 million for the 7,600-square-foot commercial condos of the Crystal Beach Suites Hotel at 6981 Collins Avenue. The sellers were Miami Beach-based Elysee Investment Company, which owned a 70 percent stake, and Joseph Cohen, who owned the rest.

The purchase likely brings the 1950-era, 1-acre property under the full control of the developers. In 2023, the Delray Beach-based developer purchased the 84-room hotel component for $18 million. 

In January, Kolter bought the four-story, 0.3-acre property sandwiched between the Port Royale Condo and Crystal Beach Suites Hotel, paying $26 million. Wells Fargo provided a $41 million mortgage. 

Put together, the acquisitions give the developers ownership stakes in roughly half of the oceanfront properties between 69th and 71st streets.

On at least a portion of the block, the developers plan to replace the aging structures with a 37-unit condo development designed by Kobi Karp. The project is set to include 947 square feet of ground-floor retail and 86 parking spots. 

Last year, the joint venture marketed a 1-acre section of the site for $110 million. A representative for the joint venture did not immediately respond to a request for comment.

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