A Mexican developer just sold a waterfront corner lot on Miami Beach’s Pine Tree Drive for $6.75 million, agents Levi Meyer and David Hunt Solomon told The Real Deal.
The closing price is a 41 percent discount off the $11.5 million original 2015 asking price, according to the MLS. The 27,860-square-foot property at 6455 Pine Tree Drive Circle hit the market with the Jills from September 2015 to September 2016.
Records show The Edge on Brickell LLC, led by developer Rafael Aragones, bought the property for $13 million in 2015, which means it just sold for nearly 48 percent less. Meyer, of the Meyer Group at Compass, said the seller acquired the residential lot as part of the $18 million sale of the Edge on Brickell development site.
Meyer took the listing over in January at $11 million and reduced it in March to $9.9 million, MLS data shows.
David Hunt Solomon of EWM Realty International represented the buyer, a financial executive. Solomon and Meyer declined to identify the buyer, and the deal has not yet been recorded online.
Price cuts are increasingly common as luxury home sellers adjust to the market in South Florida. “If this property had been listed at $7.5 million or $7.9 million, it could have been sold a long time ago,” Solomon told TRD.
Meyer agreed that sellers have to be realistic in a slower market.
“There are so only many buyers in the market that are willing to take on a 10,000 to 13,000-square-foot home at the moment,” he said.
Solomon said the buyer plans to spend more than $4 million building a modern home on the property. It has about 300 feet of waterfront on two sides. A house with up to 13,566 square feet could be built on the lot, according to Meyer.
The $6.75 million price tag equates to about $240 per square foot, which is higher than recent land sales nearby. In April, spec home developer Peter Fine sold 158 Palm Avenue for $5.6 million, or $186 per square foot. The larger, 69,000-square-foot lot at 5111 Pinetree Drive sold for $12.1 million in March, or about $175 per square foot, to Christopher Burch.