The Delray Beach Community Redevelopment Agency on Jan. 29 selected BH3 to redevelop a 7.4-acre site on the west side of Atlantic Avenue.
The AtlaWest project, at an estimated cost of $100.3 million, would bring retail, restaurants, housing and offices to the lower-income neighborhood. The site at 600-800 W. Atlantic Ave. is just west of the downtown area, where the dining and entertainment scene has thrived in recent years.
The CRA acquired the property over years and launched a request for proposals (RFP) process to find a developer.
Aventura-based BH3 was ranked fourth out of six bidders for the RFP by the selection committee. The CRA board voted to accept BH3’s offer after listening to presentations from the bidders. It will now have 60 days to negotiate with the CRA staff and finalize the development agreement.
“West Atlantic is this amazing blank canvas that has so much potential,” said BH3 Principal Daniel Lebensohn, a Delray Beach resident. “These three block fronts are instrumental in driving the direction of whole area and bringing in more capital and development. It will be its own destination.”
AtlaWest would have a grocery store of up to 33,000 square feet, 41,000 square feet of retail and restaurants with below-market rent for local businesses, 21,000 square feet of office space catering to local businesses and co-working, 117 two-bedroom flats and townhouses, 48 apartments above the retail space, a fitness center with a pool and 744 parking spaces. The developer will commit to creating some workforce housing off-site.
Lebensohn said one of the keys to BH3’s selection was its proposal for a "Frog Alley" public space behind the shops and running parallel to Atlantic Avenue. This would pay homage to the history of the area, with its immigrant fisherman, and attract visitors, he said.
BH3 was the only bidder that did not offer to pay the CRA any financial consideration to acquire the property. The other five bidders offered from $4 million to $4.2 million for the land, although the value of their respective development proposals was considerably less than the $100.3 million price tag of AtlaWest.
Lebensohn noted that AtlaWest would have about 200 more parking spaces than the nearest competitor, so that could relieve the CRA from having to build a public parking garage for the area, and it would reduce the strain on parking for all of Atlantic Avenue, which tends to be crowded at night on the weekends.
BH3 originally asked for $13.7 million in public funding for its project, but Lebensohn said his team will consider dropping that request.
Its team members include ID&Design International, Gulf Building, Saul Ewing Arnstein & Lehr, Richard Jones Architect, and Levy Land Trust.
It’s been a big week for BH3, which recently acquired the FATcity development site in Fort Lauderdale. In 2018, the company completed the Prive at Island Estates condominium in Aventura.
The offices of 4th and 5th, featuring iPic, between SE 4th Ave. and SE 5th Ave.
New square feet developed 2017
| Rank | Prior Rank | Company / URL |
|---|---|---|
1 | 1 | Mill Creek Residential |
2 | 2 | CPF Investment Group |
3 | 3 | Bridge Development Partners |
