Miami developer Terra Group has canceled a $35 million contract to buy dozens of properties along Grand Avenue in Coconut Grove, but remains interested in striking a new deal.
On Wednesday, attorneys appearing in federal bankruptcy court said the purchase and sale agreement reached over the summer was nixed over “environmental concerns.” Mark Bloom, a Greenberg Traurig attorney representing Terra Group, said that the termination of the contract “did not terminate our interest in the property.”
Bloom declined to describe the environmental concerns. In a letter sent Nov. 30 to the sellers, Terra Group President David Martin explained that Terra affiliate GV Grove Investments was “not satisfied with the property, the property’s environmental inspection results, and the status of pending litigation related to the property.”
Terra Group has been quiet about its interest in Grand Avenue, but its plans to jump-start a long-stalled redevelopment project in the West Grove by purchasing land from the owning partnership became public due to filings submitted in state and federal court. Two of the corporations that own the properties have filed for Chapter 11 bankruptcy protection, requiring an order from a judge in order to sell their land.
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Negotiations to enter into a new contract are expected to resume within the next calendar week. Attorneys said in court Wednesday that they are “optimistic.”
A hearing on the pending sale of properties tied up in bankruptcy court is set for early January.