French developer plans to build a cluster of rentals in Hollywood

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May 22, 2020
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As reported in The Real Deal.

A French developer advanced plans to build a 78-unit cluster of rental apartments and townhouses on city-owned land west of downtown Hollywood near city hall.

Hollywood commissioners, in a unanimous vote Wednesday, directed city staff to negotiate a land-sale and development agreement with Prestigia Real Estate FJM Inc. The entity is part of family-owned Prestigia Immobilier International Group, founded in 1989 and based in Reims, France.

Prestigia offered to pay $1.2 million to acquire a 1.89-acre parking lot at 2717 Van Buren Street from the city of Hollywood. A local appraiser hired by the company estimated in October 2019 that the property is worth $960,000.

“Our proposal is higher than our appraisal because we really want to develop this project and settle down in Hollywood to become a major actor in the continued renaissance of the city,” Jihad Salahdine, COO of Prestigia Real Estate FJM, told commissioners during the meeting.

Prestigia submitted the only proposal in response to the city’s request for proposals to acquire and redevelop the underused parking lot that is about two blocks southwest of city hall.

The planned development would have two four-story apartment buildings with a total of 63 units and two three-story townhouse buildings with a total of 15 units. The development also would include 111 parking places and a pool, according to a 108-page development proposal that Prestigia submitted to the city.

Monthly apartment rents would range from $1,195 for 57 one-bedroom, one-bathroom units to $1,570 for six two-bedroom, two-bathroom units. Monthly rents for the 15 townhouses would be about $2,300.

Prestigia is currently developing another South Florida project called Prestigia Pompano, designed as a mixed-use property with 51 residential units. The company, which is waiting for a permit to start construction, paid $800,000 for the development site at 30 Northeast 5th Street in Pompano Beach in a multi-parcel deal recorded Jan. 28, according to property records.

The Prestigia development in Hollywood, designed by locally based Kaller Architecture, would create an “urban-village environment with lush landscaping,” Raelin Storey, the city’s communications, marketing and economic development director, told commissioners. “This would be a new housing type for the immediate neighborhood, with high-end exterior and interior finishes,” she said.

Prestigia expects to spend $16.8 million to develop the four-building residential complex, which would have about 85,000 square feet of interior space. Financing would include $4.9 million of equity and an $11.3 million mortgage, according to Prestigia’s proposal.

The company expects to obtain long-term mortgage financing from Société Générale, and a construction loan from Miami-based International Finance Bank. Fort Lauderdale-based Moss Construction would be the general contractor, and Miami-based Lloyd Jones would be the property manager.