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Prime Redevelopment Parcel in Miami Hitting the Market

Brickell Bay Drive Site Could Go for Condos, Apartments
March 5, 2018
Point View Brickell is for sale and approved for 12 stories and 400,000 square feet of development.
Credit: Avison Young.

Bay Shore Cooperative, Inc. is selling a prime redevelopment site in downtown Miami already zoned for 12 stories of commercial development totaling up to 400,000 square feet, CoStar News has learned.

Point View Brickell is a 1.83-acre parcel at 1430 Brickell Bay Drive. The existing 98-unit co-op has no list price, but will be coveted by developers looking to build apartments or condominiums, says listing broker David Duckworth of Avison Young.

"I'm already getting calls, and I haven't even taken it to market yet," Duckworth said. "It has access to Brickell and views of the bay. The combination of the two is amazing."

Duckworth said it's likely a buyer would seek to increase the building entitlements, which would make the land even more desirable. As it stands now, a buyer could build 275 units, nearly three times as many residences as the existing building, according to Avison Young's offering memorandum.

"There are a lot of different ways to structure this deal," he said.

The site, just east of the Four Seasons, always will have unobstructed water views because this section of Brickell Bay Drive is the only stretch in Brickell along the edge of Biscayne Bay, Avison Young said.

The buyer would be purchasing the shares from each shareholder of the co-op, and the closings of the deals would happen simultaneously on the same day, according to the memorandum. The document also indicates that the buyer would be purchasing no less than 70 percent of the outstanding co-op shares, giving the buyer the power to control the board and amend the by-laws.

The site is spectacular, but ideally the co-op should have looked to sell three years ago to maximize the return, said Peter Zalewski, principal of the database.

The greater downtown Miami market has a 29-month supply of condo units, Zalewski said. Downtown rental units have only a 2.9-month supply, but that number is trending upward with more units in the pipeline over the next 12 months, he said.

In making an offer, a buyer likely will consider that it will have to sit on the site for a few years before starting construction, according to Zalewski.

"In Miami, you have to be first," he said. "If you take time to figure (the market) out, you're late."

But economist Ken Thomas, president of Community Development Fund Advisors, said it’s virtually impossible for sellers to time the real estate market perfectly.

"No one gets the cycle right," he said. "If they do, it’s only because of luck."

Duckworth's partners on the listing are Avison Young brokers Michael Fay and John Crotty.

The trio is listing for sale another choice site, this one in downtown Fort Lauderdale. Developer Joe Traina Jr. has hired the firm to find a buyer for FATcity at 300 N. Andrews Ave.

Last year, the Fort Lauderdale City Commission approved the 2.7-acre tract for a mixed-use project featuring 612 apartments, 185,000 square feet of offices and 87,000 square feet of retail. The project also may include a hotel.

Traina also is willing to stay involved with the development as part of a joint venture with the buyer, Duckworth said.

Paul Owers, South Florida Market Reporter  CoStar Group   
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