MIAMI BEACH / August 13, 2025 — A high-profile shake-up on South Beach: the 1250 West Avenue project has shifted from Michael Stern’s JDS Development to David Martin’s Terra Group. Behind this seemingly “quiet” transfer lies the collapse of Stern’s development plans, an investor exodus, and the looming threat of bankruptcy.
Documents Confirm the Change in Control
In late July, West Hospitality Owner LLC and 1250 West Ave Owner LLC — the legal entities through which the project was being developed — changed their registered address to Terra Group’s headquarters. All recent corporate actions are now signed by David Martin.
On August 7, 2025, a revised Development Agreement between the City of Miami Beach and the developer was recorded in the Miami-Dade registry. The document bears the signature not of David Martin, but of Michael Stern — indicating that while he was still formally part of the project, he was already teetering on the edge of a complete exit.
A Fall from Heights
Sources tell JDSPulse that in recent months Stern has been desperately calling potential buyers, pleading with them to take over the project because he “didn’t have the horsepower” to finish it. One key foreign investor fully withdrew from funding, putting an end to JDS’s ambitions for the site.
The deal’s economics looked like a recipe for disaster from the start: according to industry experts, Stern overpaid for the site by nearly double and built his projections around a wildly unrealistic $5,000 per square foot — as if it were prime South Beach oceanfront, despite 1250 West Avenue having only a tenuous connection to the water.
JDS Development’s Systemic Crisis
1250 West Avenue is just one crack in Stern’s expanding pattern of failures. His portfolio is riddled with stalled projects, creditor lawsuits, and investor complaints over missing millions.
Even his personal finances are in disarray: Miami-Dade County records show unpaid property taxes on a villa he owns.
Adding to the turmoil, eyewitnesses report a complete work stoppage at the flagship Mercedes-Benz Places development in Brickell.
What Stern Lost — and What Terra Gained
The project was originally unveiled as a joint venture between JDS Development and GV Development Group, owned by Italian entrepreneur and media personality Gianluca Vacchi: a 420-foot tower, more than 100 residences, a restaurant, and a park replacing the Bikini Hostel. In spring 2025, the city approved favorable zoning changes, paving the way for high-density construction.
Now, all the cards are in Terra Group’s hands. Martin has the resources, the experience in “taking over” distressed projects, and the connections to see the build through. Stern, meanwhile, has lost another headline asset — a blow that could accelerate the collapse of his development empire.
Silence Is Not a Strategy
Neither JDS Development nor Terra Group has commented on the deal. But according to our information, new documents may emerge in the coming weeks that could further erode investor confidence in Stern and his entities.
JDSPulse continues its investigation and is preparing a series of reports on JDS Development’s financial practices in Miami and New York, including overdue taxes, hidden debts, and the transfer of funds between projects.
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