The owners of a unit at Amethyst are
suing Mast Capital over the dragged out condo buyout of the
oceanfront Miami Beach property, which is now facing
competition — or collaboration — from David Martin’s firm,
Terra.
Clifford and Maria Greenhouse sued the Mast entity, as well
as Old Republic National Title Insurance Company, over the
$650,000 sale of their unit that has yet to close. They
entered into a contract last year to sell unit 205, a
740-square-foot condo, to Mast.
For more than two years, Mast Capital has been working on a
bulk buyout of the Amethyst, an 11-story, 120-unit
condominium at 5313 Collins Avenue. A group of owners allege
that Mast Capital, led by Camilo Miguel Jr., has repeatedly
extended the closing on a majority of units, leaving the
deal in limbo and holding the owners hostage, The Real Deal
previously reported.
Mast missed the original November 2022 closing date for most
of the units. In anticipation of that date, some unit owners
terminated leases with their tenants, others had their
furniture moved, and some put deposits down on future home
purchases that they’ve now lost.
The Greenhouses and other owners allege that the contract
language allows the developer to extend the closing date in
perpetuity.
“Many unit owners have lost deposits for other anticipated
purchases or replacement housing, others no longer benefit
from tenant revenue based on reliance upon Mast’s empty
promises to close,” said attorney Robert Pelier, who
represents the Greenhouses alongside attorney Aymee
Gonzalez. “Yet others feel trapped by contract language
whose enforceability, conscionability and legality is
questionable at best.”
Pelier said he and Gonzalez are working with additional
owners who are in similar positions.
The Greenhouses claim they could be “in legal limbo in
perpetuity, forever bound by a contract under which the
other party had no deadline for its performance,” the
complaint alleges.
The Greenhouses are also alleging Mast breached their
contract, and are seeking the $19,000 deposit, according to
the complaint. Old Republic is currently holding a $5,000
deposit. The additional amount represents the full 3 percent
of the purchase price that was to be held in escrow.
The Mast affiliate has spent just over $3 million acquiring
at least eight units, property records show. It has paid
$235,000 to $480,000 for the units it has purchased, ranging
from about $300 per square foot to nearly $660 per square
foot.
Terra also recently sent out offers to owners in the
building. The two developers could work together on a condo
termination and redevelopment of the property, but it is
unclear if they will.
Mast does not control units owned by a group of 28 owners,
which are needed to give the developer the minimum required
to move forward with a condo termination. The developer
canceled the contracts it had with the 28 owners, which were
all contingent on each other closing, leaving those deals in
limbo.
Terra is offering $850,000 each to the group of 28 owners,
and $550,000 each to others. That would total more than $74
million if Terra could acquire the remaining 92 units. (It
likely can’t because Mast owns some of the units, and is in
contract to acquire many of the others.)
Mast Capital also owns the site next door, where the La
Costa condo building will be torn down to make way for the
Perigon, a luxury condo tower Mast will develop with its
partner, billionaire Barry Sternlicht’s Starwood Capital
Group.
Mast previously said that many owners who agreed to sell are
concerned Amethyst is in “extreme disrepair.” But Amethyst,
built in 1964, passed its 50-year recertification in 2014,
and the building was considered structurally and
electrically safe for occupation as recently as 2020,
according to the city. Mast actually received two violations
for unpermitted work in units it owns on the third floor.