2000 Ocean: From a $34 Million Land Acquisition to a Multimillion Dollar Oceanfront Address

Along a stretch of beachfront in Hallandale Beach, just north of Golden Beach, stands 2000 Ocean, a 38 story condominium tower that represents a significant chapter in the evolution of South Florida's luxury residential market.

With just 64 residences, the building was conceived as an intimate alternative to the larger condominium towers that have come to define much of the South Florida coastline. Its development, however, involved considerably more than architecture and ocean views. Over more than a decade, the property passed through a series of land transactions, financing arrangements, construction milestones and legal disputes that provide a revealing look at the economics of luxury condominium development.

Today, the building is completed, its original construction financing has been retired, and its residences continue to trade in a market where asking prices reach $6 million. But the story of 2000 Ocean begins well before the tower appeared on the Hallandale Beach skyline.

The Acquisition of a Beachfront Opportunity in 2014

In November 2014, a company associated with New York-based developer Shahab Karmely acquired approximately 1.3 acres at 2000 South Ocean Drive.

The property, previously occupied by a 60-room hotel built in 1984, was purchased through 2000 Ocean Drive LLC. The reported transaction was approximately $33.86 million, commonly rounded to $34 million. KAR Properties subsequently stated that the actual purchase consideration was $38 million.

The acquisition represented an ambitious redevelopment opportunity: replacing an aging hospitality property with a boutique oceanfront condominium tower containing 64 residences.

At the time, Hallandale Beach was increasingly attracting developers seeking beachfront opportunities between the established luxury markets of Sunny Isles Beach and Fort Lauderdale.

Karmely's acquisition was consistent with a broader strategy of identifying prime South Florida development sites and transforming them into high-end residential properties.

The original land purchase is an important starting point in understanding the project's economics. Before construction financing, condominium presales or the eventual $128 million inventory loan, the developer had already committed substantial capital to securing the underlying real estate.

The Vision of a Boutique Luxury Condominium

KAR Properties formally launched sales of 2000 Ocean in October 2017.

The original concept emphasized exclusivity, generous residential floor plans and internationally recognized design names. Rather than competing primarily on the number of residences, the project was positioned around spacious half-floor residences, full-floor penthouses and a limited collection of luxury amenities.

Architect Enrique Norten, founder of TEN Arquitectos, was responsible for the building's architectural design, with Kobi Karp involved in the concept design. Italian design brands Minotti and MinottiCucine were incorporated into the interior and furnishing concept.

The original pricing reflected the project's positioning. Half-floor residences were initially marketed from approximately $2.8 million to $5.5 million, while full-floor penthouses were priced from $10 million and above.

The developer was entering a condominium market that was already showing signs of moderation. Nevertheless, Karmely expressed confidence in the project's location and quality, indicating that he was willing to allow additional time for sales rather than compromise the development's positioning.

That philosophy would become an important part of the project's financial story.

A Change in Sales Strategy and the Decision to Build

In August 2018, Fortune International Group, led by Edgardo Defortuna, took over exclusive sales and marketing from Douglas Elliman.

The transition was accompanied by a revised pricing strategy. Typical residences were repositioned at approximately $2.6 million to $4.4 million, while the pricing of the larger penthouses was also adjusted.

Perhaps more significantly, the developer announced that construction would proceed without a presale requirement.

That decision was notable. Presales are frequently used by condominium developers to demonstrate market demand and help secure construction financing. Proceeding without that requirement meant that KAR Properties was prepared to advance construction while retaining greater exposure to the risk of unsold inventory.

The project broke ground in November 2018.

In December of that year, KAR secured a $103 million construction loan from Apollo Commercial Real Estate Finance.

The financing represented a major milestone, providing the capital necessary to advance the 38-story, 64-residence development.

A Substantial Undertaking for Construction

Construction moved forward over the following years, with Suffolk Construction serving as general contractor.

In July 2019, the project attracted attention for an unusually large foundation concrete pour. The operation reportedly required 240 trucks, approximately 500 tons of steel and 13 hours of continuous work.

The scale of the operation illustrated the complexity of constructing a substantial oceanfront tower on a relatively compact development site.

The building ultimately delivered 64 residences, two swimming pools, a spa pavilion, fitness facilities, landscaped outdoor areas and private beach access.

The residences were designed to emphasize expansive glass, large terraces and views of both the Atlantic Ocean and the Intracoastal Waterway.

The completed building reflected the original vision of a boutique luxury property rather than a conventional high-density condominium development.

The Construction Dispute - a $16 Million Claim

Not every aspect of the development proceeded without difficulty.

In July 2022, Suffolk Construction filed a lawsuit against KAR-related ownership entities, alleging that it was owed at least $16 million for construction work at 2000 Ocean.

The dispute introduced an important financial dimension to the project's history.

Suffolk alleged unpaid contract balances and additional compensation for extra work and delays. The ownership side subsequently asserted its own claims, including allegations concerning delays and construction defects.

Court filings from February 2024 describe claims and counterclaims between the parties. A subsequent public litigation disclosure identified the matter as pending at the time of that disclosure.

The ultimate resolution and any subsequent settlement or judgment should be confirmed against the latest court docket before publication.

The distinction is important: allegations in a construction lawsuit are not established findings of wrongdoing. Nevertheless, the dispute is a material part of the property's development history and warrants attention when assessing the project's overall financial performance.

Refinancing and the $128 Million Inventory Loan

In January 2022, KAR Properties secured a $128 million condominium inventory loan from New York-based Madison Realty Capital.

The financing replaced the earlier construction debt from Apollo Commercial Real Estate Finance.

Inventory loans are commonly used by condominium developers to finance unsold residences after construction has been completed. They can provide liquidity for carrying costs, retire construction debt and allow developers additional time to sell remaining units.

At 2000 Ocean, the financing was particularly significant because the building had been completed but still contained a substantial number of unsold residences.

In October 2023, The Real Deal reported that Karmely had paid off the entire $128 million inventory loan.

At the time, Karmely said approximately 70 percent of the building had sold, leaving roughly 19 residences unsold. County records reflected 38 closings, or approximately 60 percent, although the developer noted that recorded sales can lag actual closings.

The payoff represented a significant financial milestone. It eliminated the reported inventory financing obligation, although the source of the repayment capital was not publicly established in the article.

It is also important to distinguish the retirement of the loan from the profitability of the development. A loan payoff does not, by itself, establish the project's total development costs, net proceeds or ultimate return on investment.

2000 Ocean Today - a Multimillion Dollar Resale Market

More than two years after the reported loan payoff, 2000 Ocean remains an active part of Hallandale Beach's luxury condominium market.

As of November 2, 2026, brokerage listing data identifies approximately 12 residences being marketed in the building, with asking prices ranging from approximately $2.75 million to $6 million. Some listing feeds classify one of those residences as under contract, so the precise number of immediately available units should be verified against the live MLS.

The available inventory includes predominantly three-bedroom residences, along with larger penthouse offerings.

The $6 million asking price belongs to a six-bedroom penthouse residence, while several of the three bedroom offerings are priced between approximately $2.75 million and $3.5 million.

Recent transactions also provide useful context. Brokerage data indicates that five residences closed during the 12 months ending October 2026, at a median reported sale price of approximately $3.075 million.

These figures suggest that the building has developed an active resale market, although asking prices should not be confused with completed transaction prices.

The continued presence of multiple residences on the market also raises an interesting question of how much of the remaining inventory represents developer owned units, and how much consists of individual owners seeking to resell their residences?

That distinction would help clarify whether the current inventory reflects the final stages of the original sellout or the normal turnover of an established luxury condominium.

The Larger Picture

The history of 2000 Ocean illustrates the capital intensive nature of luxury condominium development in South Florida.

What began with the acquisition of a beachfront hotel property for approximately $34 million evolved into a 64 residence luxury tower supported by substantial construction and inventory financing.

The project navigated a changing condominium market, a brokerage transition, a decision to build without a presale requirement, a significant construction dispute and the eventual retirement of a $128 million inventory loan.

Today, the property occupies a distinctive position along the Hallandale Beach coastline with residences still commanding multimillion dollar asking prices.

For KAR Properties and Shahab Karmely, 2000 Ocean represents more than the completion of another luxury condominium. It is a case study in the financial and operational complexities of taking a prime oceanfront parcel from acquisition to completed residential development.

The ultimate measure of the project's success, however, extends beyond its architecture or the repayment of its debt.

It will be determined by the prices achieved on the remaining inventory, the resolution of outstanding legal matters, the project's total development economics and the long term performance of the residences in the resale market.

More than a decade after the original land acquisition, the story of 2000 Ocean is still being written. Available units at 2000 Ocean can be viewed here.