Ari Pearl and Ivan Kaufman with the Slate Hallandale Beach Tower (Arbor Realty Trust)
Ari Pearl’s mixed-use golf course development in Hallandale Beach has completed its first phase, and he and his partner have secured a $150 million refinancing, The real deal has learned.
Pearl’s PPG Development and Michael Herman’s Premium Capital have received a certificate of occupancy for the 26-story, 250-unit premium rental building located at 101 Diplomat Parkway, Pearl confirmed. New York-based Arbor Realty Trust provided the financing, said Alexander Kaushansky, managing director of sales at Arbor. Arbor is led by Founder and CEO Ivan Kaufman.
In 2018, a Pearl-led entity paid $43.3 million for the 127-acre former Diplomat Golf & Tennis Club property at 501 Diplomat Parkway, which includes an 18-hole golf course designed by Greg Norman, a 10-court racket center and a 48- slip marina. The redesigned golf course is expected to open within a year.
The first phase is the luxury apartment building, called Slate Hallandale Beach. Sixty percent of the units are two-bedroom, 20% one-bedroom and 20% three-bedroom. The rental starts now.
Asking rents will start at $3,700 per month and 859 square feet, according to Apartments.com. They are expected to bring in an average of around $4 per square foot or $5,000 per month, Pearl confirmed. Six penthouses, with 14-foot ceilings and ocean and intracoastal views, will command $10,000 to $18,000 a month.
Hallandale Beach apartment tower facilities include a golf simulation room; a swimming pool with cabanas, day beds, and fire pits; a business center; fitness center with spa; a wine and cigar cellar; children’s lounge; theater; tennis courts and a dog park. Atlantic Pacific will manage the building.
It was originally planned to be an SLS-branded tower, but developer plans changed during the pandemic, Pearl confirmed.
The project is part of a growing trend of high-end rental developments with condo finishes and amenities. Developers are taking advantage of record multi-family rents and strong demand for luxury apartments and homes.
Kaushansky said the loan was transitional debt, which means after Pearl and Herman lease the building, they plan to secure more permanent financing.
“We love the asset, we love the location, and we really love what [Pearl is] do there,” Kaushansky added. Arbor also financed Pearl’s former property in the Bay Harbor Islands.
In September, Pearl hired Witkoff for the second phase of the Hallandale Beach development. Pearl’s PPG Development and Premium Capital Resources formed a joint venture with Witkoff and secured $55 million in fixed rate financing for phase two. This phase includes the extension of the golf course and the addition of a 15-acre golf driving range, a clubhouse with food and beverage outlets, a spa and wellness centre, a ballroom and entertainment area, 60 hotel suites and condo-hotel units.