Kempinski Residences Design District

Kempinski Residences Design District is a 157-unit luxury branded residential development located at the entrance of Miami's Design District, one of the most prestigious retail destinations in the United States. The project marks Kempinski Hotels' first residential development in the US market. The development features 132 apartments, 19 guest suites, and 6 townhouses across two towers designed by Arquitectonica, with interiors by Rockwell Group. Units range from $3.7M to $25M, with an average price of $4.8M and total gross development value of $730M.

We were attracted to this opportunity based on several factors: the scarcity of luxury residential inventory adjacent to Miami's Design District, strong migration tailwinds bringing high-net-worth individuals to South Florida, and a capital structure with meaningful downside protection including a GMP construction contract and substantial loan facility headroom. Our due diligence process included detailed analysis of the capital stack, stress-testing of absorption and pricing assumptions, sponsor track record verification, and assessment of Kempinski's brand positioning in the US market.

Active investment via club deal co-investment (LP equity). Development led by DaGrosa Capital Development Partners, co-managed by Hedge Investments and Arton Advisors, with Kempinski Hotels as brand partner.