MIAMI—With it getting more expensive to buy than build multifamily in Miami, some developers are grabbing land. A financial institution advised by The Roseview Group just sold a 1.43-acre lot in Coral Gables to a South Florida-based private investment and development company for $8.5 million, or $136 per square foot.
Rosendo Caveiro and Brad Capas of Cushman & Wakefield‘s South Florida Multifamily Advisory Group brokered the sale of the development site at 1505 Ponce de Leon Boulevard. Cushman & Wakefield represented the seller.
“Because of its superb Coral Gables location and the potential to re-zone the land for multifamily, this high-profile land offering generated extraordinary interest from the country’s top multifamily developers and several overseas investors,” says Caveiro. He attributes the excited level of interest, particularly among apartment developers, to the limited supply of luxury rental apartments in Coral Gables.
Caveiro cited additional drivers as significant rent growth trends — Coral Gables multifamily rents are among the highest in South Florida — scarcity of core multifamily development sites, and the desirability of the site itself with 220 feet of frontage along renowned Ponce de Leon Boulevard, and its proximity to Miracle Mile.”
“The primary challenge we faced in marketing this site was that most developers and their capital partners required development approvals to be in place prior to closing,” Capas says. “This would likely have entailed an entitlement/closing period of at least nine to 12 months, whereas the seller’s preference was to sell the property ‘as is’ with a more expedient closing.”