A Vacchi-backed tower set to replace a 1964 South Beach condo of 238 homes borrowed $507M before selling a unit

Nearly all of a 1964 building’s 238 homes sold, deed by deed

Bay Garden Manor, a 15-story condominium at 1250 West Ave. on Miami Beach’s bay side, was built in 1964 and holds 238 homes. County records show 146 separate deeds moved 216 of them to a developer company, 1250 West Ave Owner LLC, from May 2024 to September 2025, and on Oct. 8 Commercial Observer reported that the Terra-led partnership planning a 28-story, 106-unit tower on the site had landed a $507 million construction loan from Tyko Capital before selling a single new condo (Miami-Dade Property Appraiser; Commercial Observer; Bisnow; REBusinessOnline).

The deeds carry listed prices totaling about $95.5 million, about $442,000 a unit on average; the median of the 125 single-unit deeds is $414,000, and the units average about 551 square feet. One deed covered 10 units. The roll still lists 22 units in other names, including eight under 1250 West LLC and one under 1250 W LLC; no record we read says who those companies are (Miami-Dade Property Appraiser; our arithmetic).

Your stake: if you own in an older Miami Beach condo, this is what a bulk buyout paid on the bay side, about $442,000 for a unit of about 551 square feet, by our arithmetic from county deeds (Miami-Dade Property Appraiser).

The loan came before the sales

Pre-sales will start next year, Commercial Observer reported, calling it an unusual move because lenders typically require a sales threshold before providing construction financing; REBusinessOnline says sales are expected to begin in 2027. The tower is to rise 28 stories along Biscayne Bay with 106 condos, including two penthouses, averaging nearly 3,500 square feet. Bisnow called the loan among the largest to ever hit South Florida (Commercial Observer; REBusinessOnline; Florida YIMBY; Bisnow).

The lender has a hedge-fund backer. Commercial Observer says Tyko’s debt platform is backed by Elliott Management, and The Real Deal described Tyko in 2024 as a joint venture between founder Adi Chugh and billionaire Paul Singer’s Elliott Investment Management. By our arithmetic the loan is about $4.78 million of construction debt for each planned unit (Commercial Observer; The Real Deal).

The partners are Terra, led by David Martin; Rafi Gibly’s RG Development Group; GV Development, the firm of Italian influencer Gianluca Vacchi; and Lore Development Group. Developer Michael Stern’s JDS, a partner in the 2025 buyout, is no longer involved, a Terra spokesperson told Bisnow (Commercial Observer; Bisnow).

The buyout price included a hostel across the street

The Real Deal reported in September 2025 that the site cost roughly $120 million including the Bikini Hostel property across the street, which sources put at about $20 million, and that Northwind Group financed the buyout with a $98 million loan. The county record shows one $20 million deed, dated Aug. 28, 2025, conveying three parcels to the developer: two old hotels at 1247 and 1255 West Ave. and a house on 13th Street. The developers demolished the hostel and plan a public park there, which the city’s overlay zoning requires (The Real Deal; Miami-Dade Property Appraiser; Commercial Observer; Florida YIMBY).

The city set the tower’s limits. The Miami Beach commission approved an overlay district and development agreement in late June 2025 allowing up to 330 feet, more than double the height allowed as of right, while capping the project at 125 units against 286 allowed by right; the Design Review Board approved the plans unanimously in May 2026 (The Real Deal; Florida YIMBY).

Their side

“Securing this financing from TYKO is an important milestone for 1250 West Avenue,” Terra CEO David Martin said, and Chugh said, “Miami Beach continues to be one of the most supply-constrained luxury markets in the country” (REBusinessOnline). In a suit reported in July 2026, Vacchi and four of his companies accused Stern of defrauding him into investing at least $60 million in two Miami developments, allegations, not findings; a JDS spokesperson said “Vacchi simply didn’t meet his end of the bargain” and called the suit “a publicity stunt with no substance,” and The Real Deal reported that ownership of the 1250 West project passed to Terra’s David Martin through a city consent recorded earlier in 2026 (The Real Deal; Bisnow).

What’s next

The condo association must still be terminated before the 1964 building can come down, The Real Deal reported in 2025; no source we read says it has been demolished. Sales of the new units are set to start in 2027 (The Real Deal; REBusinessOnline).