A pair of developers bought a block of single-family homes in Hialeah for $23.5 million, with plans to build a 612-unit apartment complex.
SP Developments and Continua Developments purchased all but one of the houses between East 27th and 28th streets, and between East Ninth and 10th avenues, Daniel Jaramillo, of SP, told The Real Deal. The development site spans 3.6 acres.
SP is related to Miami-based Strategic Properties. SP is now the development division, and Strategic focuses on property management, Jaramillo said. Miami-based Continua, led by Pablo González, is the U.S. development division of Colombian real estate firm Constructora Capital. Continua is a 90 percent equity partner in the deal, according to Jaramillo.
The project would consist of two 10-story buildings, one facing Ninth Avenue and the other facing 10th Avenue, with a garage between them. The developers, who scored zoning approval this summer, plan to submit final plans for city consideration next year and then seek roughly $110 million in construction financing. If approved, the project is expected to be completed in 2026.
The purchase of the 19 houses breaks down to an average of over $1.2 million per home, including broker commissions.
The holdout homeowner “wanted too much money for it [the house], so we decided not to move forward with it,” Jaramillo said.
Hialeah, long a single-family home community with some industrial real estate, is being quickly redeveloped with mixed-use projects. The construction flurry partly resulted from the city upzoning an area, including SP and Continua’s development site, near a massive public transit station north of East 25th Street that includes Tri-Rail, Amtrak, Metrorail and bus stops.
Also in Hialeah, MG Developer and Baron Property Group are developing the three-building Metro Center project with 1,526 apartments between East 26th and East 25th streets, and between East Ninth and 10th avenues.
On a portion of the Hialeah Park Racing & Casino, Prestige Companies and Hialeah Park President John Brunetti Jr. plan a 343-unit apartment complex with a Mater Academy charter school.
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