Terra Group plans renovation for apartments next door to Grove at Grand Bay

Miami /
Jun.June 16, 2016 10:30 AM

With two major condo projects well underway in Coconut Grove, David Martin’s Terra Group has taken on a new project of a considerably smaller scale.

After securing a refinanced loan for the building, Terra is moving forward with plans to renovate and rent out an aging apartment complex called the Summerhill Apartments.

Located at 2678 Tigertail Avenue, the slender seven-story apartment building was first constructed in 1969 across the street from city hall and the Grove Key Marina. It has 97 units with sizes between one and two bedrooms, or roughly 700 square feet to 1,200 square feet.

This week, Terra refinanced the property’s $23 million loan with Fifth Third Bank, according to county records. Lender BridgeInvest provided the original financing behind Terra’s acquisition.

Martin told The Real Deal that his firm will now begin renovations for the building, including new floors, ceilings, lighting, bathrooms and kitchen finishes — though he’s not ready to talk about specifics just yet.

Renovations are slated to finish by August or September.

He hopes to attract young professionals and bachelor-types in the Grove, like doctors and lawyers. The renovations will cause rents to be “slightly adjusted,” Martin said, but they’ll be determined by the market.

“At the end of the day, the for sale product is great, but a lot of the millennials want mobility,” he said. “We want to create products that can meet that demand.”

Terra bought the apartment building in 2014 and is now looking to expand its rental holdings in the neighborhood, Martin said, citing low vacancies as a sign of untapped demand.

“There are certain neighborhoods in South Florida like Miami Beach and Coconut Grove that have very high barriers to entry, very restrictive zoning, very few areas to create new supply,” he said. “That scarcity helps provide a very strong fundamental value.”

His firm is currently developing Grove at Grand Bay, a pair of twisting condo towers with 98 units that are sold out. Down the street, Terra and the Related Group are also building Park Grove, another luxury condo project with three towers and a total of 284 units.


Related Articles

arrow_forward_ios
David Martin, Central Shopping Plaza, and a rendering of the apartment complex

Terra proposes 1,384-unit apartment complex near Magic City Casino

Terra proposes 1,384-unit apartment complex near Magic City Casino
Terra CEO David Martin and 16000 Pines Boulevard, Pembroke Pines

Terra, Lennar’s Pembroke Pines townhome project advances

Terra, Lennar’s Pembroke Pines townhome project advances
David Martin and a rendering of the project

Voters reject Terra’s proposal to redevelop Miami Beach Marina with condo tower

Voters reject Terra’s proposal to redevelop Miami Beach Marina with condo tower
3187 Royal Road, Coconut Grove (Realtor)

Ransom Everglades sues developer Caroline Weiss over backyard boat dock

Ransom Everglades sues developer Caroline Weiss over backyard boat dock
Eighty Seven Park (iStock)

Eighty Seven Park’s priciest penthouse sells for $37M

Eighty Seven Park’s priciest penthouse sells for $37M
Matthew B. Gorson and One Park Grove (Google Maps)

Greenberg Traurig chairman pays $7M for One Park Grove condo

Greenberg Traurig chairman pays $7M for One Park Grove condo
Kelly Beam, Ricky Trinidad , and 3265 Bird Avenue (Credit: Google Maps)

Miami developer Metronomic files for bankruptcy

Miami developer Metronomic files for bankruptcy
Mike Fernandez and Grove at Grand Bay unit 1901S (Getty, Lifestyle Production Group)

Miami billionaire Mike Fernandez sells Grove at Grand Bay condo

Miami billionaire Mike Fernandez sells Grove at Grand Bay condo
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...