MIAMI BEACH / September 5, 2025 — JDSPulse Editorial Board
Another high-profile buyout is shaking up Miami Beach. Terra and JDS Development Group, alongside investors Gianluca Vacchi and Rafi Gibli, have announced the acquisition of over 95% of the units in Bay Garden Manor, a building constructed in 1964. The total deal is valued at approximately $120 million, with Northwind Group providing $98 million in mortgage financing.
What’s Known
- Bay Garden Manor: 238 units, a 1.9-acre site on Biscayne Bay (1250 West Ave).
- New Project: A 32-story tower up to 330 feet tall, with a maximum of 125 luxury units (instead of a possible 286).
- Architect: Kobi Karp.
- Bikini Hostel across the street is set to be acquired and converted into a public park—a condition for gaining additional building height.
The Hidden Cost of a Flashy Project
On the surface, this looks like another “neighborhood transformation.” But the history of JDS Development and Michael Stern tells a different story.
- Financial Baggage Stern is known not only for bold projects but also for tens of millions in debts and lawsuits. In New York and Miami, his name is tied to delays and disputes. The new $98 million loan feels more like a bid to buy time and shift risks onto yet another project rather than a sustainable long-term plan.
- Promises vs. Delivery Talk of “resiliency improvements” and “public spaces” is familiar—from Mercedes-Benz Places to 9 DeKalb. But some of these promises stall, while others turn into marketing ploys. The proposed park at the Bikini Hostel site seems more like a bargaining chip for zoning concessions than a genuine gift to the city.
- Buyout Under Pressure The terms of the buyout from individual owners remain undisclosed. After the Champlain Towers South collapse in Surfside, stricter inspection and repair regulations have put pressure on owners, many of whom sell to developers when they can’t keep up. Stern is capitalizing on this wave, turning aging communities into platforms for new debt structures.
- Reputation Imbalance Northwind calls Stern and his partners “experts with an impeccable track record.” The reality: lawsuits, frustrated investors, and projects plagued by delays. In professional circles, JDS’s track record is far from flawless.
JDSPulse Comment
Bay Garden Manor isn’t just a $120 million deal. It’s another example of Stern pushing forward with bold promises and leveraged financing. An aging condominium is becoming a pawn in his strategy.
Yet there’s a key nuance: unlike Stern, David Martin of Terra has a proven record of completing projects in Miami Beach. If Martin, not Stern, takes the lead, the neighborhood might avoid another debt-fueled mirage and see a result that benefits not just investors but the city itself.
https://www.multihousingnews.com/terra-jv-secures-120m-to-develop-miami-luxury-tower
https://commercialobserver.com/2025/09/stern-jds-terra-bay-garden-manor-miami-florida-condo-housing/