A Chinese construction company partnership has just purchased a rare gem of scarce beachfront land for a high-rise development for a cool $38.5 million.
The property, one of the last plots available on red-hot Miami Beach, has a storied history. The piece of beach, which was sold by Peebles Corporation, had been on the market since August, according to The Real Deal.
The land was last sold in lieu of foreclosure for $4.6 million to an affiliate of the Canadian development company Madison Group. Peebles bought out that company and its assets early in 2014.
Peebles wanted to build a 15-story condo tower with 13 full-floor units, topped by a penthouse that he intended to sell for $50 million.
Peebles Corp. owner Don Peebles told The Real Deal that his company is shifting its focus to projects in the Northeast, predicting that the Miami market is cooling off.
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After reviewing multiple offers, Peebles sold the site to a partnership comprised of China City Construction Company and American Da Tang Group. The partnership, CCCC Miami Beach LLC, now owns just under one acre at 6747 Collins Avenue in Miami Beach.
The partnership now plans to build either a high-end hotel of about 150 rooms, or a apartment building with roughly 60 posh units. The zoning to accommodate a project of that size is already in place.
The sale was handled by Engel & Völkers and CBRE for the seller, and American Da Tang Group and Borda Commercial Real Estate represented the buyers.
“This beautiful property will be developed to complement our group’s planned multi-use development across Biscayne Bay in Downtown Miami,” Shanjie Li, American Da Tang CEO, said in a statement.
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The site will be developed in coordination with American Da Tang’s project at 1430 South Miami Avenue in the Brickell area, which the firm acquired for $74.8 million.
Irving Padron, Managing Partner of Engel & Völkers in Miami told World Property Journal: “This plot is one of the last undeveloped plots of land in Miami Beach– one of the most sought-after property markets in the world. The plot offers versatile building opportunities with great investment potential.”
These purchases follow on a trend that the New York Post just reported on: Miami condo developers turning to new markets, including Peru, China and the Persian Gulf, to prop up sales.
South Florida developers, the Post reported, are focusing a great deal of effort on luring Chinese clients. One group traveled in April to Beijing to market a handful of properties directly to buyers. They met with eager purchasers there: the Paramount condo development sold about 17 of its 513 units, priced from $650,000 to more than $6 million, to Chinese nationals.
