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13th Floor Assembles Oceanfront Miami Beach Site With $73M Buy

Westgate South Beach Oceanfront Resort at 3611 Collins Avenue_photo credit Trip Advisors 1170x435

13th Floor Investments is assembling a prime oceanfront site in Miami Beach, having purchased an aging resort along Collins Avenue next door to a condo property it terminated last year.

The Miami-based developer paid $73 million for the Westgate South Beach Oceanfront Resort at 3611 Collins Avenue, located north of the Faena district in the Mid-Beach neighborhood, property records show.

The three-story building, which functions as a timeshare resort, was built in 1938 and houses 46 units on 0.8 acres.

The purchase comes eight months after 13th Floor Investments terminated the condo association of All Seasons property, which neighbors the Westgate resort. The move grants 13th Floor Investments full control of the seven-story building, which was completed in 1980 and sits on 0.4 acres.

Combined, 13th Floor Investments’ assemblages span 1.18 acres, and is a likely target for condo development. Bank OZK provided a $51.9 million loan for both properties, according to records. A representative for the developer declined to comment on plans for the site or the price of the All Seasons property, divulging only that Opera Acquisitions LLC, managed by Valerio Spinaci, was a partner and responsible for assembling both properties.

Condo terminations are a growing trend among developers following the deadly collapse of the Champlain Towers South condominium, which was built in 1981 and was poorly maintained. As owners of similar aging condos face expensive assessments to fund repairs, some are opting to sell to developers, who often tear down the building to construct luxury condominiums.

 

Source:  Commercial Observer

 

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Terra Offers $500M For Oceanfront Miami Beach Condo Building

Terra has offered half a billion dollars to buy out an oceanfront condo building in Miami Beach, six months after a Related Group-led venture backed out, according to a letter obtained by Commercial Observer.

Located at 5445 Collins Avenue, the property, Castle Beach Club, sits on 4 acres along the famed Miami Beach strip, offering 576 linear feet along the ocean.

The deal — if finalized — would effectively become the most expensive land purchase in the Miami area. Terra, led by David Martin, will most likely tear down the 18-story building and construct an ultra-luxury condo complex. The site can accommodate a structure up to 200 feet tall.

The proposed buyout is part of a growing trend following the deadly collapse of Champlain Towers South, a condominium built in 1981 that was poorly maintained. Some condo associations of similar, decades-old buildings are choosing to sell to developers to avoid footing the bill for costly repairs, now mandated by Florida law.

In late 2021, the homeowners association of Castle Beach Club put the property, which dates back to the 1960s, on the market, hiring a team led by Colliers’ Ken Krasnow and Gerard Yetming to shore up the highest price.

Jorge Perez’s Related Group and 13th Floor Investments first swooped in a year ago, together bidding $500 million. But the joint venture backed out of the deal in October after their financing fell apart as interest-rate hikes rattled capital markets and a handful of unit owners held out.

Last Friday, Terra officially entered the picture, matching Related’s original offer.

A letter penned by Yetming was sent to unit owners announcing Terra’s $500 million bid, which averages out to $877,192 per unit. The property’s 570 unit owners are set to receive individual offers in the next two weeks, after which they will have about two months to decide whether to accept the offer. To complete the sale, Terra will likely need 95 percent buy-in from condo owners.

“We can confirm that Terra has the capability to complete this purchase, and has the funding in place to do so,” according to a letter.

The source of Terra’s financing remains unclear, though the developer is said to have a partner on the deal with whom it previously worked with.

Back in 2022, Terra and seven other firms had bid on Castle Beach Club, according to The Real Deal, which first reported the most recent proposal.

 

Source:  Commercial Observer

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