Meruelo Cancels $200M Purchase of Casablanca Miami Beach

The Meruelo family backed out of a $200 million buyout offer for the historic oceanfront Casablanca resort in Miami Beach, The Real Deal has learned.

The condo-hotel at 6345 Collins Avenue, with about 350 residential and commercial units, had the buy-in from more than 95 percent of unit owners, according to a letter brokerage Colliers sent to owners officially informing them that Richard Meruelo canceled the deal. Meruelo’s CASABX LLC “elected not to proceed with their contract to purchase,” the letter states.

The nearly 2-acre property at 6345 Collins Avenue hit the market last summer with a Colliers team led by Gerard Yetming and Ken Krasnow. The 10-story building was constructed in 1948 and designed by architect Roy France. Many units are operated as short-term rentals.

Colliers said that the buyer decided against moving forward with the deal because of “continued difficulties [and] uncertainty in the capital/debt markets.”

Colliers could begin negotiations with another buyer. Terra, 13th Floor Investments, Related Group and Mast Capital are among the developers that have attempted, are in the process of or recently closed on buyouts in Miami Beach.

The $200 million price equates to almost $1,000 per square foot, based on a total building square footage of 200,337 square feet.

Meruelo’s offer was reportedly dependent on his family selling the Deauville Beach Resort property at 6701 Collins Avenue to billionaire developer Steve Ross.

Ross’ purchase was contingent on voters approving a referendum last November that would have allowed Ross to build a much larger project on the Deauville property than what current zoning allows.

Voters rejected the referendum, but Ross is reportedly still interested in purchasing the Deauville, sources said.

Alex Steuben, president of the Casablanca condo association, said in October that the offer for the Casablanca property was made without that contingency in place. Steuben did not immediately respond to a request for comment.

Developers have aggressively pursued condo buyouts of older, waterfront properties along the coast, particularly since the deadly condo collapse in Surfside two years ago. But the deals are complex and have become more challenging as a result of tighter condo safety legislation that requires owners to maintain their properties, even if they will eventually be demolished, and shakier capital markets.

The Meruelos developed the Akoya condo building in 2004, immediately north of the Casablanca, at 6365 Collins Avenue.

As a contributing structure in the North Beach Resort Historic District, Casablanca is protected from demolition, unless the structure is declared unsafe or the historic preservation board votes in favor by a five-sevenths vote to demolish it. A buyer could seek approval from the same board to add floor area ratio totaling about 45,000 square feet and additional height.

The Deauville was also a historic property, but the building was ordered to be demolished last year after the Meruelos submitted a report that showed the building was unsafe. The family was accused of intentionally letting the property fall into disrepair so they could sell it or redevelop it.

Richard Meruelo, a son of developers Belinda and Homero Sr., is also at the center of a highly litigious divorce with his ex, Maria, that involves their former home and other real estate in the city.