$125 Million Miami Property Investment Sets Record
A new Miami property investment of $125 million for a 1.11 acre waterfront site sitting at the mouth of the Miami River has shattered records. Without question, the Miami real estate market is surging into unprecedented territory. The sale price of the parcel comes in at $2,588 per square foot – simply amazing. Even more amazing is the fact that the deal was all cash and took less than a month to close. The players in this deal were no doubt focused and highly efficient.
The acquiring party for the record-setting parcel is a family that owns one of Argentina’s largest supermarket chains. Their empire started off as a chain of butcher shops that were founded in 1987. Their discounted model expanded quite well during the hard economic times of Argentina. This is one more example of why Miami property investment is so desirable to foreigners — the stability of our currency and real estate. Argentina has had major problems with their currency over the last two decades, and they may be headed for another brutal devaluation. Taking this into consideration, investing into trophy real estate in Miami makes a lot of sense.
Miami Property Investment Hitting New Heights
For this record-settting $125 million Miami property investment, the family from Argentina has chosen a market that is rapidly growing. I spoke last week about the incredible surge in international real estate investments here. Miami has an incredible international ethos. When I’m strolling through the Brickell area, I hear people speaking Spanish just as much, if not more, than English. So, I can understand the comfort in investing into our city (which many see as the capital of Latin America).
The sellers of the property is DP Property Holding LLC, managed by Ugo Colombo and Diego Lowenstein. The two are local legends who are also from Argentina. I’m sure that this played a role in facilitating this fast closing. It’s been a pretty good week for Argentina – first the World Cup Finals appearance with the Golden Boot awarded the Messi and now this mega deal.
Large Ultra-luxurious Development Plans
The first question that comes to mind about this deal is usage. We know the astronomical land value, but how high can they go? Well, information is circling that Colombo and Lowenstein’s company received City of Miami approval for a major use special permit in 2004. Under the permit, the property owner could construct a 609-foot building with up to 596 residential units. A new owner could also ask the city to change the property’s zoning so it reflects the current Miami 21 code, which would allow a maximum of 1,250 residential units. My guess is that the new group is going to give it their best shot to get as many units as possible. All in all, this mega deal is one more example of why Miami property investment is surging to incredible levels.