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The Real Deal Miami

Adler buys vacant lot near Miami River for $14.25M

Site is zoned for up to 36 stories
By Sean Stewart-Muniz | August 03, 2015 01:30PM

The property at 230 Southwest 3rd Street

The property at 230 Southwest Third Street

Adler Group, a Miami-based real estate company, just paid $14.25 million for a chunk of vacant land next to the Miami River.

The property is a sizable grass-covered lot that sits directly next to a city of Miami administrative building. It measures 1.58 acres, is located at 230 Southwest Third Street, and last sold for a modest $4.6 million.

CBRE, the property’s listing brokerage, had marketed it as a development opportunity. Its zoning allows for a developer to build up to 36 stories, or up to 60 stories if the builder uses the bonus program under the Miami 21 Zoning Code. Through that route, a developer can exchange funds or public benefits for extra building capacity.

The zoning also allows for 500 residential units per acre, for a gross total of 1.5 million square feet (or 2.1 million with the bonus) in the building.

Adler Group both manages and develops properties. Among the company’s current projects is a large mixed-use development adjacent to the Douglas Road Metrorail Station and the Shorecrest Club Apartments in Miami.

The company purchased the property through an affiliate named Lancelot Miami River, which could be the name of the site’s future development. The seller was another LLC headed by George Heisel, who paid $4.6 million for the site in 2013.

Adler financed the deal with a $7.8 million loan from Bank of the Ozarks, a community bank headquartered in Little Rock, Arkansas.