Terra’s David Martin Acquires Stake in Deauville Miami Beach Site, Announces Reconstruction Plans

Developer David Martin has acquired a minority stake in the former Deauville Beach Resort site, a property that billionaire developer Stephen Ross had under contract two years ago. Deauville Associates, led by the Meruelo family, sold a 25 percent interest in the 3.8-acre oceanfront property at 6701 Collins Avenue in Miami Beach for $12.5 million. According to records, TMG 67 Communities LLC, a company connected to Martin’s Terra based in Coconut Grove, completed the purchase. A spokesperson for Terra disclosed that the firm is spearheading plans to introduce an iconic development to the site and hinted at reconstructing the former resort. However, additional details still need to be shared. Terra did not respond to inquiries regarding the total investment in the deal.

The Deauville, a historic hotel constructed in 1957 and designed by Melvin Grossman, was demolished in 2022 following a structural report submitted by the Meruelos to the city, citing its unsafe condition. Criticism was directed at the Meruelo family, led by Belinda Mereuelo, for neglecting the building, which had been closed since 2017. Over the years, the hotel welcomed luminaries such as the Beatles, along with Frank Sinatra and Joan Rivers, for their U.S. debut on “The Ed Sullivan Show” in 1964.

In a significant turn of events, the Meruelos struck a deal in the same year as the demolition to sell the property to Ross, chairman of the New York-based Related Companies, for $500 million. However, the sale hinged on voters approving a ballot measure granting Ross permission to undertake a more extensive project designed by Frank Gehry. Miami Beach residents rejected the referendum, leading to the deal’s collapse.

Under a newly enacted state law facilitating the demolition of coastal structures, local authorities are prohibited from mandating the replication of demolished buildings, preserving any of their elements, or imposing requirements that differ from those applicable to other properties within the same zoning district.