Miami developer Related Group one of the buyers of prime oceanfront mall on Singer Island
The Ocean Walk mall, a key piece of beachfront real estate on Singer Island, sold for a weighty $19.2 million last month to a partnership of real estate investors including the prolific developer Related Group of Miami.
The open-air mall is touted as the only retail space in northern Palm Beach County with shops, restaurants and bars directly next to a public beach access, making it a valuable asset in a post-pandemic market where oceanfront is coveted, Realtors said.
“You walk out the back of any of the businesses, cross a little pathway, and there’s the beach,” said Coldwell Banker Realtor David Custons, who specializes in Singer Island real estate. “It’s a busy place now, and I think they see, long term, the property values that have shot up in the past three years aren’t stopping.”
City of Riviera Beach commissioners approved the sale last month in what is technically a ground-lease transfer where the buyer, which included Aventura-based BH Group, owns the buildings but rents the land from the city. The seller was Pebb Capital, which bought rights to the ground lease in 2017 for $7.55 million.
Pebb Capital emphasized that when it took over the mall at 2401 Ocean Ave., it was only 53% occupied. It’s now 100% occupied with shops and restaurants, including Mulligans Beach House, Bar & Grill, Johnny Longboats seafood restaurant, Two Drunken Goats Beach Cantina, Wings Beachwear and Sweet Treats & Ice Cream. There’s also a 7-Eleven convenience store, a nail salon, and the Seaview Bagel Café & Deli.
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BH Group founder Isaac Toledano said in an email that there is a waiting list of tenants wanting to lease space in the mall. BH Group was interested in the purchase because of the mall's "great potential."
"It's very rare to find oceanfront prime retail space, about nine acres and over 800 feet of oceanfront," he said.
Just north of the mall are high-end condominiums and hotels, including the Ritz-Carlton Residences, Amrit Ocean Resort and Residences, and Marriott’s Oceana Palms.
Sara Maxfield, economic and business development manager for Riviera Beach, said the city is eager to speak with the new owners to learn more about their plans for the 65,908-square-foot property.
“It’s a really unique asset, which is why we want to chat with them to see what their vision is,” Maxfield said. “We’d also like to share some things that we would like to see there.”
The land is not zoned for residential, but Maxfield said a hotel with retail on the bottom could potentially be built in the space.
“For all I know, they could be planning to raze it and rebuild,” she said. “They own the buildings.”
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Maxwell said the mall owners also pay rent to the city of about $72,000 a year, which increases annually based on the Consumer Price Index for all urban consumers. The lease runs through 2058.
In addition to BH and Related Group of Miami, Pebb Enterprises was also one of the ground-lease buyers. The Related Group of Miami is led by Jorge Perez and is not affiliated with New York’s Related Cos., which is led by Miami Dolphins billionaire owner and Palm Beach resident Stephen Ross.
But both are investing big in Palm Beach County.
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In May, Related Group of Miami and BH Group were approved by Riviera Beach’s Community Redevelopment Agency for a 99-year ground lease on vacant land at the Marina Village project along Broadway. The agreement includes building two 20-story residential towers with 422 units, and an eight-story development with 138 units of affordable housing.
“By having both the market rate and workforce affordable components we are bringing economic stimulation to the community but also make units available to the community,” Related Group Vice President Tony Del Pozzo at a May CRA meeting. “If you know Related, we do every project from the most affordable to the highest end condo and everything in between.”
The Related Group also opened the Icon Marina Village luxury apartments in West Palm Beach this year, which includes two 24-story towers. It is also seeking approval for a condominium tower at 4906 N. Flagler Drive and 1717 N. Flagler Drive, both in West Palm Beach.
BH Group's Teledano did not expand on potential plans for the mall, but at least one tenant would like to see more parking added.
Michael Nguyen, owner of the Ocean Walk Nailbar, said during the winter season, beachgoers park for long periods in the mall's parking lot and his customers can't find spaces.
"Especially on Friday, Saturday and Sunday, some people stay three to four hours at the beach and take up spots," Nguyen said. "I lose business. We really, really, really need the parking."
Custons said Singer Island's popularity is growing with people recognizing its location near downtown West Palm Beach and its easy access to the Atlantic Ocean through the Lake Worth Inlet. The July purchase of a waterfront mansion on Singer Island by celebrity chef and reality television star Guy Fieri adds to its cachet.
"I wouldn't be surprised if he opens a place up there in the mall," Custons said.
Kimberly Miller is a veteran journalist for The Palm Beach Post, part of the USA Today Network of Florida. She covers real estate and how growth affects South Florida's environment. Subscribe to The Dirt for a weekly real estate roundup. If you have news tips, please send them to kmiller@pbpost.com. Help support our local journalism, subscribe today.
This article originally appeared on Palm Beach Post: Palm Beach County oceanfront mall sells to Related Group
