$70 Million Paid For 2 Oceanfront Development Sites In Miami-Dade County Published on 3/28/2012 12:02:52 PM
In a pair of separate transactions, investors paid a combined $70 million – a premium of nearly 330 percent over the 2011 assessed value - for two development sites zoned for “high density residential” on Collins Avenue fronting the Atlantic Ocean in Northeast Miami-Dade County, according to a new report from CondoVultures.com.
The high-priced land transactions that both sold in March 2012 come as South Florida is experiencing a condo boom with 29 new towers proposed for the coastal tricounty region of Miami-Dade, Broward, and Palm Beach, according to the CondoVultures.com Preconstruction Condo Projects list.
In the highest priced transaction, a development group with roots in Argentina paid $50 million – an average of about $715per square foot - for three contiguous parcels with a combined 70,000 square feet in the 9300 block of Collins Avenue in the town of Surfside, according to Miami-Dade County records.
The site - where the Best Western Oceanfront Resort with 98 units currently operates - has an assessed value of less than $11.2 million, or $160 per square foot, for 2011, according to Miami-Dade County Property Appraiser records.
The buyer – Hallandale Beach-based Chateau Ocean LLC with managing member Manuel Grosskopf – has been on a buying spree in recent years in South Florida, according to Miami-Dade County and Florida Secretary of State records.
Grosskopf-related entities have already purchased five developments sites - in addition to the newly acquired Surfside property - around South Florida ranging from the existing Ocean Palm Motel site on Collins Avenue in Sunny Isles Beach to the former Paramount Park condo tower site at 728 Biscayne Blvd. in Greater Downtown Miami, according to Miami-Dade County Property Appraiser Office records.
In February 2012, Grosskopf proposed the 35-story Chateau Beach tower - with 84 units on a one-acre site on Collins Avenue - in Sunny Isles Beach, according to a recent CondoVultures.com report.
Grosskopf is a member of a South American group that develops and invests in residential towers and shopping centers in Argentina and Uruguay. The group has reportedly developed several condo towers including the Chateau Libertador Residence and Chateau Puerto Madero Residence.
In the second oceanfront land transaction to occur in March 2012, a South Florida corporation – Aventura-based Palermo Beach LLC with member Daniel J. Serber - purchased a 32,000-square-foot development site in the 17100 block of Collins Avenue for $20 million, or $625 per square foot, according to Miami-Dade County and Florida Secretary of State records.
The site – located between a pair of luxury Jade Ocean and Ocean Four condo towers – has a 2011 assessed value of $5.1 million, according to Miami-Dade County records.
To complete the transaction, the buyer obtained a $13 million loan that matures on March 13, 2013 from the seller R.K. Land Holdings LLC with Raanan Katz, according to Miami-Dade County and Florida Secretary of State records.
The seller purchased the development site in July 2008 for $9.6 million - $300 per square foot - as the South Florida real estate market was crashing, according to Miami-Dade County records.
It is unclear what the new owner plans to do with the Sunny Isles Beach development site as five new towers with at least 330 units are already planned – one project of which is already under construction – in the barrier island city located in Northeast Miami-Dade County, according to the CondoVultures.com Preconstruction Condo Projects list.
As of Dec. 31, 2011, developers have sold nearly 5,800 condo units out of the pool of 6,400 units created in Sunny Isles Beach during the South Florida real estate boom that began in 2003, according to a recent CondoVultures.com report.
At the 2011 sales pace of more than 40 condos per month, the unsold developer units in Sunny Isles Beach would be absorbed in the first quarter of 2013.
Sunny Isles Beach is a 40-block stretch from the town of Golden Beach boundary south to Haulover Beach Park, Biscayne Bay east to the Atlantic Ocean. Sunny Isles Beach is divided up into three neighborhoods separated by causeways: North, Central, and South.
Developers created 27 projects with nearly 6,400 units in the Sunny Isles Beach market since 2003. Prior to the boom, developers had built nearly 60 projects with nearly 12,000 units in Sunny Isles Beach, according to the Condo Vultures® Official Condo Buyers Guide To Sunny Isles Beach™.
It is important to note there are various stages to a residential real estate transaction in South Florida.
A transaction begins when a property is made available for sale and ends when a title is conveyed from one party to another party as a result of the recording of a deed with the local government.
As part of the process, a property typically goes under contract and into a due diligence phase by which a deal can be canceled.
The CondoVultures.com new condo sales report is based on completed transactions where a deed is recorded and taxes paid as a result of the sale.
Condo Vultures® LLC is a real estate consultancy and marketing company based at 1005 Kane Concourse, Suite 205, Bal Harbour, Florida, 33154. You can reach Condo Vultures® LLC at 800-750-0517.
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