Aria Development Group, a leading real estate investment and development firm, and Wexford Real Estate Investors, a West Palm Beach based real estate investment and development firm, are pleased to announce they have sold a 28,000 square foot parcel with 100 feet of direct ocean frontage in Surfside, Florida. Located at 9163-9165 Collins Avenue, Aria in partnership with Wexford, sold the property to Fort Partners for $41.5 million.
“Aria’s approach has always been to find hidden value where it is overlooked,” said Josh Benaim, Founder and CEO of Aria. “This property was an opportunity to find a jewel that was obscured by a complex legal structure. Aria was able to navigate this intricate transaction and worked strategically with Wexford to maximize the value of the asset.”
The partnership acquired the land in 2013 while the site was encumbered by a long-term ground lease in an off-market transaction involving complex legal structure and negotiations. To arrive at a value for such an unusual asset, Aria and Wexford used the same financial principles one would apply to a long-term zero-coupon bond that is inflation protected, and realized that the investment had enormous upside with very limited downside risk.
“The sale of this site speaks to the emergence of Surfside—and South Florida more broadly—as a globally renowned destination, and highlights Aria’s ability to execute on off-market creative opportunities,” said David Arditi, Principal and Co-Founder of Aria. “We purchased this site prior to the announcement of the Four Seasons Hotel development next door, and we are thrilled to have executed such a strategic and creative investment alongside our exceptional partners at Wexford.” Aria and Wexford’s development strategy has often focused on identifying locations before they fully emerge as premier neighborhoods. Aria has made strategic and timely investments in Boerum Hill, Brooklyn, Downtown Miami, U Street and NoMa in Washington, DC, as well as NoDa in Charlotte and East Nashville.
Wexford was intimately involved in the disposition of the asset and led the negotiation of the sale of the property that led to a win-win outcome culminating in what is expected to be a beautiful oceanfront development. “We knew we were buying something special when we purchased this land. We are happy with the financial outcome, and we are excited to see the final product that Fort will deliver,” said Joseph Jacobs, President of WREI.
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