Terra paid $32M for Bay Harbor Islands development site

Terra closed on a mixed-use development site along Bay Harbor Islands’ Kane Concourse for $31.5 million.

David Martin’s Coconut Grove-based Terra had been under contract to purchase the property at 1177 Kane Concourse and closed on Wednesday, according to a news release from one of the sellers.

The purchase comes on the heels of the Bay Harbor Islands Town Council’s vote on June 9 to transfer the development agreement to Terra from the previous owner.

Sellers Northwood Ravin and Wharton Equity Partners’ Wharton Urban real estate investment platform in early 2020 won town approval to build 90 residential units, 98,800 square feet of office, and 14,900 square feet of commercial space.

Jaret Turkell and Roberto Pesant of Berkadia marketed the site on behalf of Charlotte, North Carolina-based Northwood Ravin.

The development agreement remains in place, Town Council members and a Northwood Ravin representative said during last week’s meeting.

Prior to last week’s vote, Terra’s David Martin said the group’s plan is for a residential, office and retail project, adding that there will be a “signature food and beverage” operator at street level.

Although the council voted unanimously to convey the development agreement to Terra, some members said they were unhappy that the sellers are transferring the site after the town worked with them to hammer out the project design.

Ben Yorker, Northwood Ravin vice president of development, responded that the goal was to create a “cherished community asset” and achieved this after working with residents. But the project would benefit from a developer and operator who is locally based, he added.

Peter Lewis, chair of New York-based Wharton Equity Partners, said in the release that in light of the activity in Miami’s submarkets, “this was an ideal time to redeploy capital” throughout South Florida and in its projects in other markets.

The Wharton and Northwood affiliate, NR/Wharton Kane Concourse Property Owner, bought the site in 2016 for $20.3 million.

Another project on tap in Bay Harbor Islands is the 41-unit, eight-story Onda condominium at 1135 103rd Street. Ugo Colombo’s CMC Group and Valerio Morabito’s Morabito Properties are developing the building, with an expected completion in 2023.