Canero Pays $17M for Chateau Coconut Grove Condo Buyout

Jose Canero’s Canero Group paid $17.3 million to acquire all the units in a Coconut Grove condo building.

Property records show Canero affiliate WNG Miami acquired Chateau Grove, a 25-unit development at 3265 Virginia Street in Miami. The two-story building, built in 1963 on a 0.9-acre lot, is zoned T4-L, according to the property appraiser and information from the real estate database Vizzda. Aries Capital represented Canero in the financing.

Canero plans to rent out the units to generate immediate cash flow, a company spokesperson said. The Coral Gables-based firm is working with partners Maria Bustamante and Juan Puig. The partnership could eventually redevelop the Coconut Grove site.

Canero financed the purchase with a $12.5 million loan from Aventura-based Rok Lending, according to Vizzda and records.

Canero Group’s Michael Axel Neree, Maria Patty Bolanos and Raquel Rivas brokered the bulk deal, Rivas said.

The 62-year-old building has not gone through its 60-year recertification, which was due in 2023, and is a requirement in Miami-Dade County. The city of Miami’s unsafe structures board granted the new owner a six-month extension to submit its recertification, according to a video recording of the meeting.

The complex includes four one-bedroom, one-and-a-half bathroom units; four two-bedroom, one-bathroom units; eight two bedroom, one-and-half-bathroom units and nine two-bedroom, two-bathroom apartments.

The property is north of Cocowalk, a mixed-use, open-air shopping center that Federal Realty Investment Trust and its partners renovated and expanded during the pandemic.

Luxury condo development has boomed in Coconut Grove in recent years, led by David Martin of Terra, the Pérez family’s Related Group and other developers. Near Chateau Grove, Terra is building the Well Coconut Grove, a wellness-branded luxury condo building across from Terra and Related’s separate headquarters.

Condo buyouts can be notoriously difficult and time consuming because one buyer is working with multiple sellers with different motivations and expectations. Canero had his eye on the property for over a year, and the deal came together in only six months, Rivas said.

Canero also recently secured approval from Miami-Dade County to build a 54-unit townhouse project in Homestead.