A prime location along Coconut Grove’s fast-changing bayfront was acquired for $29.5 million by investors who wooed the seller in an all-cash, off-market deal.
A group led by Camilo Miguel Jr. at Miami Beach-based Mast Capital with Miami-based 13th Floor Investments and Greenwich, Conn.-based Wexford Capital closed Monday on 2699 South Bayshore Drive, a nine-story office building on a little over an acre.
The seller was a Chilean investor who acquired the property in a Florida limited liability corporation in 2012.
The property, zoned for a condo or mixed-use tower, looks out on Dinner Key Marina and Biscayne Bay, a stretch of the Grove’s bayfront that is planned for a major makeover with a new park, restaurants, marina and promenade.
“We bought this opportunity. There’s no immediate plan determined to redevelop it, but considering what’s happening in the Grove it’s obviously something on our radar,” said Miguel, the 37-year-old founder and CEO of Mast, a small private-equity firm.
“For now, we just love the real estate,” said Miguel, who grew up in Miami and has a business degree from the University of Miami.
“It’s an irreplaceable asset in the heart of what we believe to be one of Miami’s best markets,” said Arnaud Karsenti, managing principal of 13th Floor, a real estate investment firm whose other current ventures include developing a luxury condo tower at 1010 Brickell Avenue in a joint venture with Key International.
The Grove building is fully leased to tenants, including the accounting firm of Kaufman Rossin & Co., and the law firms Katz, Barron, Squitero, Faust Friedberg, English & Allen, P.A., and Coffey Burlington.
Just north of the site, which is at the intersection of 27th Avenue and Bayshore, the Miami-based Terra Group is developing a super luxury condominium called the Grove at Grand Bay at 2675 South Bayshore Drive, which is the site of the old Grand Bay Hotel. It was designed by Danish architect Bjarke Ingels.
At 2701 South Bayshore Drive, the site of the old Coconut Grove Bank building that was sold last year for $55 million, Terra and Related Group are developing Park Grove, a high-end condo on 5.2 acres.
Last November, voters approved a controversial plan for developers to lease and overhaul a piece of the Grove’s public waterfront and to build a marina, restaurants and a public promenade to complement a new city-built park.
Miguel said he was investing in real estate for several years when he founded Mast in 2006. The firm, he added, has two high net worth partners whom he declined to identify and 11 employees.
Mast has purchased several rare Miami locations recently seeking out properties not listed for sale.
Last year, Mast acquired a 15,000-square-foot lot with an historic 6,000-square-foot French-style home at 1500 Brickell Avenue. “We got the historic board and city commission to approve a code amendment for new use,” said Miguel, who is considering high-end restaurant and retail options for the unusual site in the heart of the financial district.
Also in 2013, Mast bought a vacant lot in Miami Beach’s South of Fifth neighborhood and a small condo building next door and is planning to build about a dozen three-bedroom condos in the coveted neighborhood.
In 2011, Mast acquired a Washington, D.C.-hotel and upgraded it to an all-suite boutique hotel called The Graham Georgetown.
Miguel’s firm also invests in debt, both performing and non-performing. In 2011, Mast joined with Related Group and Deutsche Bank to acquire a $76.8 million performing loan on a resort in the Florida Keys and was paid back last October, when the property sold.
“We try to dig up opportunities and find deals that are off market,” Miguel said. “We like to find unique deals.”