The Real Deal Miami

Peebles gives up on Overtown development deal

Affordable housing component and financing were sticking points

July 26, 2016 10:30AM

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The parking lot at 152 Northwest Eighth Street (Inset: Don Peebles)

The parking lot at 152 Northwest Eighth Street (Inset: Don Peebles)

Developer Don Peebles has reportedly quit his pursuit of a deal that would see him build a $250 million mixed-use project in Miami’s Overtown neighborhood.

Three years ago, according to the Miami Herald, Peebles and All Aboard Florida battled over who would win the right to redevelop two city blocks in Overtown. The solution, as ordained by the Southeast Overtown Park West/Community Redevelopment Agency, was to split the land in two and give a piece to each developer.

As pointed out by the Herald, it seems the decision proved fruitful for only one of the parties. All Aboard Florida’s massive MiamiCentral development is chugging toward completion next year, while Peebles’ plans for a retail and residential complex have gone up in smoke.

Peebles and the CRA terminated their development agreement last month, according to the Herald, and the redevelopment agency voted Monday to re-open solicitation for the two-acre parking lot at 152 Northwest Eighth Street.

Barron Channer, a Peebles partner for the Overtown project, told the Herald that the developer and the CRA couldn’t resolve their issues with the purchase agreement.

Meanwhile, Clarence Woods of the CRA told the Herald that Peebles had trouble securing financing, and that a requirement to reserve 60 units for workforce housing proved to be a sticking point.

Peebles is not out of Overtown for good, however. The Herald reported that he is still pursuing a mixed-use development on another piece of CRA land at Northwest Second Avenue and Northwest Sixth Street.

This isn’t the first development Peebles has walked away from in South Florida. Last year, the Peebles Corp. CEO sold a prime piece of waterfront land in Miami Beach for $38.5 million to a Chinese partnership[Miami Herald]Sean Stewart-Muniz