A high-powered real estate partnership has wrapped up the largest waterfront land acquisition in Miami’s history, bringing on billionaire developer Vlad Doronin to close a $520 million deal that now includes plans for a new hotel and branded residences.
Originally announced in January, Miami- and New York-based Oak Row Equities and partner Mariposa Real Estate said they had finalized a deal to acquire a 4.25-acre parcel in Miami's Brickell financial district from the investment management company Aimco. They said Doronin's OKO Group would join the partnership.
The parcel encompasses an existing 32-story office tower at 1001 Brickell Bay Drive, the 31-story Yacht Club Apartments and 485 feet of waterfront access.
The record for Miami's priciest land sale was previously held by billionaire Ken Griffin. The Citadel CEO paid $363 million for a 2.5-acre waterfront site down the street for a planned supertall office headquarters.
For Oak Row Equities, the deal marked another step forward for a firm founded in 2018 that is already responsible for $4 billion in South Florida development, including Wynwood Plaza, home to Amazon’s South Florida headquarters and 509 luxury rental units.
“Closing on Brickell Bay Drive is a historic moment for our growing firm — a milestone that speaks to the caliber of our team — and for the future of Miami,” said Eric Rutter and David Weitz, Oak Row’s managing partners, in a statement.
Tyko Capital provided a $465.5 million acquisition and predevelopment loan for the property, which sits in the only area in Miami zoned for supertall towers, or buildings over 984 feet. The developer trio is planning a new hotel and branded residences for the upcoming project’s first phase.
“Brickell’s final remaining waterfront site of this scale provides a rare opportunity to create an iconic mixed-use development that will set a new benchmark for design, wellness and luxury hospitality in the United States,” said Doronin, CEO of OKO Group, in a statement.
Doronin’s OKO Group has been involved in multiple high-profile projects in Miami, including Una Residences, a luxury condominium that set a record when the 47-story tower's tri-level penthouses sold for $17.75 million each, and 830 Brickell, the city’s newest office tower.
The seller, Aimco, provided $85 million in transferable seller financing notes to the buyers. The notes come with a two-year term, two one-year extension options and an average 18% interest rate, the Denver, Colorado-based real estate investment trust said in a statement. Aimco plans to monetize the seller financing notes.
The land sale is part of a broader plan by Aimco to liquidate the real estate investment trust following a year-long strategic review of how best to create the greatest value for shareholders.
The company announced the sale of a $455 million Chicago-area multifamily portfolio earlier this month in a deal that’s expected to close in the first quarter next year.
"These important transactions highlight Aimco's commitment to unlocking the shareholder value created through years of prudent investing and active management of the portfolio,” said Dary Stone, chairman at Aimco, in a statement.