Miami Beach commissioners ordered an independent engineering review of the pedestrian bridge tied to Five Park residences, developed by Terra and GFO Investments, after utility conflicts raised questions about whether the bridge can be completed as promised.
The city commission voted unanimously to obtain an assessment of the feasibility of the bridge, which would carry pedestrians over the MacArthur Causeway at Fifth Street, connecting the South of Fifth and West Avenue areas with the Baywalk near Five Park.
Russell Galbut’s family office, Miami-based GFO Investments, and David Martin’s Coconut Grove-based Terra completed Five Park at 500 Alton Road in 2024. The 227-unit building is the city’s tallest and includes two condo associations: the Park, with 132 units on floors eight through 25, and Canopy Residences, with 95 units starting on floor 26.
Commissioners want the review to either confirm or challenge the developers’ finding that the pedestrian bridge cannot be built in its current design.
The bridge was required as part of a 2018 development agreement for the 48-story Five Park condo tower, but some residents are frustrated that the tower was completed while construction of the bridge is unresolved.
Among the biggest obstacles are FPL transmission lines buried about 50 feet underground.
City officials said state law does not clearly address the required vertical clearance between bridge foundations and utilities, while FPL is not obligated to help relocate the lines. Relocating the utilities could cost tens of millions of dollars, City Manager Eric Carpenter said.
“If we find that they can do it, we’ve got to force their hand,” Mayor Steven Meiner said.
If the bridge is determined to be unfeasible, the mayor suggested requiring the developer to redirect money earmarked for the bridge toward another way of allowing pedestrians to cross Fifth Street and the MacArthur Causeway without traversing the roadway.
The city’s preferred option is the bridge, but city does not own the right of way, which is controlled by the Florida Department of Transportation, and multiple utilities run through the area.
The city is seeking an independent analysis of a bridge feasibility report received last year. While the city initially considered hiring Kimley-Horn — the firm that previously reviewed the project’s design — Kimley-Horn withdrew due to a potential conflict of interest. The city is in talks with another engineering firm to conduct the review, the city manager said.
The independent review could examine whether redesigning the bridge or obtaining additional land could solve the problem. Officials said additional property on the north or south sides of the right of way could potentially change the feasibility of the project.
Commissioners questioned whether the developer could walk away if the bridge becomes too expensive.
The city attorney said cost alone would not appear to provide an out under the development agreement. If the bridge is determined to be buildable and the developer can obtain a building permit, the developer would have an obligation to complete it, potentially at its own expense, even if the cost is significantly higher than originally expected.
The agreement does, however, contain a provision allowing the developer to walk away if it cannot obtain a building permit. Determining whether a permit can be secured is therefore a key part of the feasibility question, the city attorney said.
Commissioners Laura Dominguez and David Suarez criticized the way the development agreement was handled and questioned why the utility conflicts were not identified earlier.
Dominguez said it was troubling that the 48-story tower was built in two years without progress on the bridge, while Suarez said the city needs to do a better job ensuring developers fulfill promises made under development agreements.
Terra and GFO Investments secured a $345 construction loan in 2021 for Five Park, which marked one of the largest loans to close in South Florida during the pandemic. Blackstone Group and Apollo Global Management provided the financing.
Condos in the building have sold for between $1.6 million and $19.5 million. Penthouses were sold for $17.5 million to waste mogul Patrick Dovigi, $19.5 million to Citadel biotech fund manager Daniel Krizek, $18.5 million to Chicago attorney Larry Rogers Jr. and his wife, and $17.3 million to hedge funder Jay Newman. Other buyers include Stephanie Dorrance, the ex-wife of Campbell’s Company heir John Dorrance, former Lehman Brothers managing director Gary Killian and hotelier Kevin Wendle.
Galbut and Martin have other projects in the works in Miami Beach. Galbut broke ground on a Whole Foods-anchored mixed-use project at 1901 Alton Road with a $54 million construction loan from Ocean Bank last year.
Martin is co-developing the Grand Hyatt Miami Beach Convention Center hotel with Jackie Soffer’s Turnberry, which will include a pedestrian bridge connecting the hotel to the convention center. The project was recently topped off and is expected to be completed next year.
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