M Development sells interest in Naples luxury development project

A New York investor has purchased Aspen, Colorado-based M Development’s interest in developing the former St. George & The Dragon property into luxury condominiums, boutique shops and restaurants in Naples, but the project team will continue to guide the project.

Now called The Avenue, the project spanning 4.3 acres on nearly two city blocks on Fifth Avenue South will be developed by Andy Penev, previously M Development’s head of development. New York-based JSB Capital Group has been the investor since the properties were purchased by 5th Avenue South Holdings LP for $43.5 million in 2021.

The team that shepherded the project through numerous Naples approval processes will remain the same and includes MHK Architecture & Planning, New York City-based Morris Adjmi Architects, Architectural Land Design of Naples and Miami-based L&ND landscape design. The developer hired The Dawn McKenna Group, which has offices in Naples and four states, to head sales and marketing efforts. Preconstruction sales ranging from less than $3 million to $8 million will begin in January — before construction starts early next year.

“The Dawn McKenna Group’s intimate knowledge of the Naples market and unparalleled success selling some of the finest addresses in the nation makes them uniquely qualified to introduce The Avenue,” Penev said. “Their proven track record and extensive contacts are invaluable assets to our team.”

The announcement came Oct. 23, the day Naples’ Design Review Board unanimously approved final design plans, allowing the developer to apply for building permits. No further City Council approval is required due to the settlement, but the DRB will review preliminary plans for the remainder of the project on the 1000 block of Fifth Avenue South in November.

The changes to the team come four months after the city settled a lawsuit with 5th Avenue South Holdings that accused Naples of hindering M Development’s project. The lawsuit was filed three months after City Council voted to halt plans for underground garages due to flooding concerns after Hurricane Ian. M Development planned two underground garages and branded that an illegal moratorium that prevented administrative staff approvals, including its pending plans. But the city’s attempts to halt the project were preempted by a state law prohibiting municipalities from imposing stricter post-hurricane building standards until October 2026.

The settlement was formalized Oct. 16, when City Council approved new boundaries for the development. The agreement dropped plans for underground parking and big-box retailers, reduced size and intensity, improved traffic circulation, and alleyways and rights- of -way won’t be vacated — allowing them to be used for utilities and a tree-shaded pedestrian shopping walkway.

The luxury mixed-use project will be built near Four Corners, the gateway to downtown Naples. It’s bounded by Sixth Avenue South, Ninth and Eleventh streets. Two floors of luxury condominiums will sit atop 75,000 square feet of boutique shops, restaurants and commercial uses on lushly landscaped open-air walkways that will resemble old European streets. A ground-floor garage will accommodate residents and commercial uses.

Homes will range from two to four bedrooms, with amenities ranging from rooftop pools, state-of-the-art fitness centers and club rooms tailored for co-working and social gatherings. Other amenities include a doorman, on-site management and concierge services to coordinate home watch, shuttle service, electric Moke America Naples Beach House Cruisers, outdoor activities, theater reservations, personal training, grocery delivery and home setup assistance.

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