Developers Kolter Group and BH Group are close to completing the consolidation of their Miami Beach oceanfront property. Their objective is to redevelop the area into a luxurious condominium complex. The joint venture now owns a majority of the units in the Port Royale Condo building at 6969 Collins Avenue in the North Beach neighbourhood.
Since July, the joint venture has paid 61.6 million US dollars for 163 of the building's total 172 units. This is according to an analysis of property data by Vizzda, first reported by the Business Journals. These acquisitions expand Kolter Group and BH Group's existing acreage, which stretches approximately 2 acres along the beach between 69th and 71st Streets and includes two adjacent hotels.
Strategic Acquisitions and Financing
Already in 2023, Kolter acquired the 34,980 square foot Normandy Plaza Hotel for 18 million US dollars. The three-storey building, constructed in 1950, is located at 6985 Collins Avenue. In January of this year, an entity affiliated with the joint venture paid 26 million US dollars for the four-storey Crystal Beach Suites, built in 1936 at 6979 Collins Avenue. In July, the 7,600 square foot commercial units within the building were also purchased for 14.4 million US dollars.
Wells Fargo this week increased a loan for the mentioned properties to 83.2 million US dollars. The bank thus doubled the loan amount compared to the mortgage originally issued in January. The developers also filed plans last week for the demolition of the Normandy Plaza Hotel. Already in 2025, construction plans were submitted for a 37-unit condominium project, designed by Kobi Karp, which is to be built on a portion of the property.
Details of the Planned Development
The 17-storey project will include 947 square feet of ground-floor retail space and 86 parking spaces. It represents the latest luxury condominium development in North Beach, a comparatively quiet and previously affordable neighbourhood, located approximately 10 miles north of Downtown Miami.
- —The 55-year-old Port Royale building had to be evacuated five years ago after being deemed unsafe.
- —The evacuation followed the fatal collapse of the nearby Champlain Towers South Condo building in 2021.
- —The current condominium sales are likely related to state reforms passed after 2021, which increased maintenance fees for many owners, some of whom are now selling to developers.
- —Kolter Group and BH Group are frequent collaborators and only last month secured a 197 million US dollar construction loan for a boutique luxury condominium in Naples.
