The Real Deal Miami

Ugo Colombo’s 830 Brickell is back on the market

0.8-acre property is across from Brickell City Centre

May 27, 2015 06:15PM
By Ina Cordle and Katherine Kallergis

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A map of 830 Brickell, Ugo Colombo and a rendering of the site

A map of 830 Brickell, Ugo Colombo and a rendering of a potential property on the site

In a sign of a possible market recalibration, a Brickell area property co-owned by developer Ugo Colombo is being listed for sale by CBRE, The Real Deal has learned.

The unpriced assemblage of parcels, at 830 Southeast First Avenue, will likely trade in the same range as similar properties in the area, CBRE’s Vice Chairman of Investment Sales Robert Given told TRD. That is likely between $55 million and $65 million per acre, he said, referencing the sale of 700 Brickell and the Capital Brickell site.

Colombo’s 0.8-acre property, across from the planned Brickell City Centre, includes development rights and plans, Given said. It is being marketed as 830 Brickell.

Colombo’s CMC Group acquired the land for an undisclosed amount in July 2013, according to Miami-Dade property records. The property had been purchased out of bankruptcy by Oleg Baibakov, a Russian oligarch. Previously, entities linked to developers Renzo Renzi and his brother Pasquale Renzi had planned the Beacon of Brickell Tower on the site.

Colombo and other CMC executives were not available for comment on Wednesday, according to their spokesperson.

CMC’s partner on the property for sale is Russian developer Vlad Doronin, who is also CMC’s partner on Brickell Flatiron, at 1001 South Miami Avenue. Sales for the 60-story, 552-unit condo tower launched in April 2014. A second Brickell Flatiron tower was originally planned for the site.

“The partnership just decided it was in the best interest of the partnership to sell the property,” CBRE’s Given said.

The Brickell area near Brickell City Centre is packed with proposed condo projects. In a 10-block stretch on South Miami Avenue, from Fourth Street to 14th Street, 17 towers with 5,500 units are planned, said Peter Zalewski, principal of Condo Vultures and a columnist for TRD.

Colombo’s attempt to sell the property, which is referred to as Brickell Flatiron II, is a sign the market is changing, Zalewski said.

“This is a gentleman who understands the cycles and how they work…. This is a clear and evident sign that the market is at a peak, possibly even past it, in Greater Downtown Miami,” Zalewski told TRD. “Ugo Colombo’s track record is too good to assume anything else.”

Over the past two decades, Colombo has developed such luxury South Florida projects as Bristol Tower, Santa Maria, Porto Vita, Grovenor House and the Epic Residences and Hotel. He sold the 1.25 acre Epic East site for $125 million last year.

“It is actually good news,” Zalewski said. “When a veteran developer like Ugo Colombo acknowledges that the market is changing, the rest will follow,” he said, adding that it can in effect prolong the cycle.

“We will see a recalibration,” he said. “This is a sign that the Miami market is maturing. It’s no longer an adolescent, it is starting to make some adult decisions.”

  • jake

    Oh Zalewiski stop it with your blabber of how the market is over. You yourself have no idea. Without Ugo admitting it you have no proof. His return percentage compared to risk might of been so much greater by selling it rather than building. After all you have no idea again because no one knows what be purchased it before. He also might have a different place in mind to develop with that money. Chetrit does this all the time and you don’t go around screaming bloody murder. Stop trying to scare everyone in Miami and create drama out of nothing.

  • Really???

    I don’t agree with Zalewski much but I have to agree here, sort of. The market has clearly matured. Columbo had a land basis of about $28M. He already has Brickell Flatiron and likely doesn’t want to have to sell out another tower in face of the competition. He could always wait for the next cycle, but why wait when you can sell land into the peak of the market if someone is dumb enough to buy. If the new buyer comes in and builds then I guess we’ll be eating crow but I can pretty much guarantee that if they can get even the bottom of Given’s pricing then I seriously doubt anyone is going to be building on that lot at that price and our current construction prices.

    • jake

      Construction prices has followed suit with real estate prices. Developers complain all the time but what they don’t complain about is the price of real estate sales going up. Trust me the price of real estate has gone up a lot higher than construction. It’s all drama. Just like theres not enough subcontractors…. YES THERE ARE… they just DON’t WANT TO WORK FOR YOU, and they don’t care to wait 180 days to get paid. Why not go work for the other contractor who doesn’t beat you up and pays you every 30 days?