Witkoff, Ari Pearl Get $273M Construction Loan for Shell Bay

Witkoff Group and Ari Pearl’s PPG Development scored a $273 million construction loan for Shell Bay, a mixed-use luxury condo and hotel project in Hallandale Beach.

J.P. Morgan and BDT & MSD Partners are providing the financing for the 150-acre property anchored at 501 Diplomat Parkway, according to a press release. Shell Bay calls for an Auberge-branded condo and hotel, and a Greg Norman-designed private golf course. The project will also include a 48-slip marina on the Intracoastal Waterway, a members’ clubhouse with a spa, restaurants and event space.

The developers recently broke ground on the Residences at Shell Bay, a 20-story, 108-unit condo tower, and the 21-story, 60-key Auberge hotel. They are expected to be completed in 2027, according to the release. Kobi Karp Architecture & Interior Design is the architect and AvroKO is handling the interiors.

Witkoff, Ari Pearl Get $273M Construction Loan for Shell Bay — Renderings of Shell Bay (MARCH)

Pearl, president of Hallandale Beach-based PPG Development, said securing the loan reflects “the project’s success” so far. Faisal Ashraf of Lotus Capital Partners arranged the financing.

The condo component is roughly 50 percent presold, with an average price per square foot of $2,000, Pearl said. That would mark a record for Hallandale Beach once completed. Douglas Elliman is leading sales of the project. Pricing for the remaining units starts at $2 million, according to a spokesperson.

Amenities will include food and beverage outposts run by Michelin-starred chef Julien Jouhannaud, a pool and spa, fitness center and children’s amenities.

The Norman-designed golf course includes a 12-acre practice facility, a nine-hole Par 3 course, a racquet club with tennis, pickleball, padel and basketball courts, batting cages and a children’s playground, which are all already open, according to the release.

In 2021, New York and Miami-based Witkoff formed a joint venture with Pearl and secured $55 million in fixed-rate financing from ConnectOne Bank.

PPG and Michael Herman’s Premium Capital purchased the property for $43.3 million in 2018. A partnership led by Louis Birdman had previously planned a $450 million redevelopment of the golf club. PPG and Premium Capital financed the construction of a 26-story, 250-unit luxury apartment tower on the property with a $100 million loan secured in 2019.

The developers are all active in South Florida. Witkoff, Pearl and Len Blavatnik’s Access Industries are working on redeveloping the Banyan Cay Resort site in West Palm Beach.

Last year, Witkoff and Monroe Capital secured $430 million in construction financing also from J.P. Morgan for their Shore Club condo and hotel project in Miami Beach. Ashraf arranged that loan as well.

Lenders continue to provide construction financing to condo projects, in part because developers can tap into buyers’ deposits to fund construction, which lowers the lenders’ risk.

Other large loans secured recently in South Florida include Related Group and Integra Investments’ $527 million loan for St. Regis Residences, Miami, a luxury condo development in Brickell. Tyko Capital, a private equity and credit investment management firm led by Adi Chugh, provided the loan. More than 60 percent of the units were presold at the time.