Edgewater, a bayfront
Miami neighborhood north of downtown, continues to attract
big spenders.
The latest, Beach Hill Capital Partners — a Miami-based
investment firm led by Daniel Rotenberg — is offering $130
million for an older waterfront condo complex called Bay
Park, The Real Deal has learned.
|
Bay Park at 3301 Northeast Fifth Avenue |
According to the LOI
from Beach Hill, the buyer would give Bay Park unit owners
between nine and 12 months to find new housing.
The property, developed in 1961, includes 13- and 14-story
buildings with more than 211,000 square feet, parking, a
tennis court and a pool. It’s zoned T6-36A-L, which allows
for at least a 36-story building.
Though tricky, condo buyouts have become more common in
South Florida due to a scarcity of undeveloped land,
especially along the waterfront. Vlad Doronin’s OKO Group
recently completed a bulk purchase of a condo in Brickell
where the developer is now building Una Residences. Jules
Trump and Gil Dezer have done the same for condo towers in
Sunny Isles Beach.
Older buildings approaching their 40-year recertifications,
which often require unit owners to pay a special assessment
to bring their buildings up to code, are prime targets.
After a 40-year recertification, buildings are re-assessed
every decade.
That, coupled with rising property taxes, insurance and
other costs, often result in owners taking the offer and
moving elsewhere.
“All of these things sort of snowball,” said condo
consultant and former TRD columnist Peter Zalewski. “That’s
typically why people decide to sell. Terminations, that’s
what’s going to happen a lot this cycle.”
Developers, including the Melo Group, OKO Group, Related
Group and Two Roads Development, all have new condo projects
in Edgewater. Melo recently launched sales of the first of
two towers at Aria Reserve about ten blocks south, with
prices ranging from $750,000 to $12 million for penthouses.
The developer spent a decade buying more than 80 parcels,
including condo units, to complete the five-acre assemblage.
Elsewhere in South Florida, developer Jean Francois Roy is
in contract to buy out the condo owners of a property in
downtown Fort Lauderdale and replace the building with a
rental project called Avica Rio Vista, fronting the south
bank of the New River.
Last year, a group of developers including Bruce Eichner and
Two Roads Development were competing to purchase an aging
condo building in Bal Harbour, with offers of more than $100
million. A deal for that property has not yet closed.