Miami-Dade County abandoned a proposed $400 million deal to purchase an aging fuel depot on Fisher Island. Instead, the county will pursue acquiring the property via eminent domain.
The move ramps up the battle between the county and one of South Florida’s wealthiest communities, where access is limited to ferry, boat or helicopter and owners pay hundreds of thousands of dollars to belong to the private club.
Long story short, TransMontaigne Partners, the previous owner of the nearly 10-acre fuel depot put the property up for sale. Miami-Dade bid on the site, but dropped the ball, and HRP Group acquired the property for $180 million in October, allowing TransMontaigne to continue operating the fuel facility until 2027. The county relies on the facility for continued fuel supply for cruise ships at PortMiami.
When it acquired the property, HRP Group and its local partners, who include the Related Group and Russell Galbut, agreed to demolish the fuel bunk, remediate the land, develop luxury condos, and convey 4 acres to the Fisher Island Community Association.
Fisher Island residents were relieved, as they wanted the fuel depot gone.
But then, Miami-Dade began to negotiate with HRP to purchase the land at a significant markup: $200 million at closing and $200 million over the next 20 years. That is, until, everything blew up (figuratively, not literally).
Last week, days after residents filed a scathing lawsuit against HRP, two top county officials resigned over the mess and Miami-Dade Mayor Daniella Levine Cava ended conversations regarding the $400 million deal. Instead, the county will push on acquiring the property via eminent domain.
HRP’s CEO Roberto Perez released a lengthy statement, criticizing what it calls the county’s “incompetence after years and frankly decades of failure to plan for PortMiami infrastructure.”
Perez said HRP is not backing down.
“Seizing private property is not the solution for public failure. Prior to the mediation process, the County represented to us multiple times that alternate fuel storage options exist and rejected our offer to finance a relocation. We will defend against and defeat any attempt to condemn the property.”
Miami watchdog blog Political Cortadito posed the question: “What if the luxury condos were never really the play?”
Related and Galbut didn’t immediately respond to requests for comment.
We’ll be keeping an eye on what happens next.
What we’re thinking about: Voters will decide whether to increase the property tax exemption for homesteaded properties come November. How could this affect the real estate market, for better and for worse? Send me a note at kk@therealdeal.com.
CLOSING TIME
Residential: In Palm Beach, a nearly 9,000-square-foot mansion at 115 Via La Selva sold for $43.3 million. A trust tied to Philip and Catherine Korsant sold the property to Thomas Swan. Swan is co-CEO and director of the Swan Group, which owns manufacturing businesses and commercial real estate.
Commercial: A warehouse at 1800 Northwest 70th Avenue near Miami International Airport changed hands for $19.2 million. An LLC tied to Jacavi Properties sold the property to Miami-Dade County.
— Research by Mary Diduch
NEW TO THE MARKET
A three-story luxury condo at the Estates at Acqualina, the Trump Group’s oceanfront Sunny Isles development, hit the market for $59.5 million. European Wax Center co-founder Joshua Coba and his wife, Jenni, own the unit at 17975 Collins Avenue, which is on the market with Chad Carroll of the Chad Carroll Group at Compass. The nearly 12,000-square-foot condo has five bedrooms and six and a half bathrooms. The Cobas paid $19 million for the unit and once planned to flip it for $85 million.
A thing we’ve learned
PMG’s Kevin Maloney said the planned Delano Residences Miami is now nearly 30 percent presold, just months after launching sales. Maloney discussed the project and the nearby Waldorf Astoria Residences on a panel at the National Association of Real Estate Editors conference, held in downtown Miami. The Delano, a 966-story tower with 421 units, is part of the branded condo craze underway in Miami. Maloney noted that not all branded projects are built equally — read more about why South Florida’s branded condo market may be reaching its limit here.