Dezer Development to buy 19 more acres, envisions gathering 60 in all on Sunny Isles Beach
By Sherri C. Ranta
Nineteen more acres are expected to be added to New York-based Dezer Development's Sunny Isles Beach holdings in the next three to six months.
Four acres are expected to change hands this week for the 11-acre $600 million Trump Grande Ocean Resort and Residences now under construction on Collins Avenue between 180th and 182nd streets. Dezer is expected to pay $18 million for the 1950s Suez Motel on 4 acres at 18215 Collins Ave., the last piece of land needed for the beachfront project now under construction with New York-based developer Donald Trump.
And developer Gil Dezer said the company is in the process of purchasing three older motels on 11 contiguous beachfront acres at the southern end of Sunny Isles Beach. Like many of the older Sunny Isles motels, the buildings were converted to condominiums.
"We've bought 90% of these buildings. We're still negotiating with 10% of the owners," he said, declining to cite names until the deals are complete.
The purchases, he said, are expected to take three to six months. Plans will probably include condominium or condo-hotel projects.
Dezer Development is also looking to complete the deal for another 4-acre Sunny Isles Beach site but declined to name the property. About 10% of the owners have not yet sold their units, he said.
Once these deals are complete, Dezer's Sunny Isles Beach portfolio will grow from 27 to about 46 acres. In time, Mr. Dezer said, the company expects to increase its holdings to at least 60 acres on Sunny Isles Beach.
Dezer Development's Sunny Isles Beach portfolio includes Dezerland Beach Resort and Spa and the Thunderbird, Driftwood, Monaco and Golden Nugget motels.
Work on Dezer's first priority, the Trump Grande Ocean Resort and Residences, continues. Closings are expected to begin in 60 days, Mr. Dezer said, on the first phase, a 32-story, 372-unit condominium hotel Trump International Beach Resort.
About 95% of the units are sold, Mr. Dezer said.
"The lobbies are ready, the rooms finished and furnished. The AC is running on the lower floors." Dezer officials say the condominium-hotel should be open in time for New Year's Eve celebrations.
Work on the second phase, a 55-story, 278-unit condominium tower, Trump Palace, is expected to begin Oct. 11 when developers, their guests and city officials are expected to celebrate the event at an on-site reception that will feature the installation of a time capsule that will be excavated in 2047 commemorating the 50th anniversary of the City of Sunny Isles Beach. The city was incorporated in 1997.
Mr. Dezer said company officials revised plans for the second and third phases, increasing heights from 47 to 55 stories. The third phase - Trump Royale - with revised floor plans, is expected to contain 303 units. Building above 50 stories, Mr. Dezer said, is a major decision, increasing costs and materials. "The cranes have to be larger. Everything is more expensive, everything becomes a big deal."
"We were looking at plans. We've had great success with the first building. We said, 'Let's not leave any extra buildable space on the table.'"
About 87% of the second phase, Mr. Dezer said, is sold. Company officials expect to top out in about a year with completion in 18 months.
"This is above the economy. People who are wealthy are wealthy. We are catering to the wealthier guy," he said. Units at the condo-tower are priced were initially priced from $380,000 to about $1 million. Units in the condo towers, officials said, now are priced from $500,000 to more than $5 million.