Terra Pays $40M for Miami Midtown Site for Planned Condo
By Julia Echikson June 26, 2023 12:57 pm
reprints
Days after canceling the blockbuster $1.2 billion land acquisition in Downtown Miami, Terra has finalized a land deal in the city’s Midtown neighborhood. The Miami-based developer, in partnership with Lion Development Group, paid $40 million for a 1.6-acre vacant site at 3501 NE First Avenue, south of the Miami Design District, the joint venture announced.
Plans call for a luxury condo tower designed by Miami-based architect Arquitectonica and design studio Yabu Pushelberg. The parcel is zoned for a 24-story building.“The opportunity to develop a tower at the gateway to the Design District, which has come alive as one of South Florida’s most walkable neighborhoods, is appealing,” David Martin, co-founder and CEO of Terra, said in a statement.
A Terra representative declined to provide additional details about the development.
The joint venture secured a $30 million loan from Metropolitan Commercial Bank to fund the land acquisition and the initial site development in advance of the project’s expected groundbreaking in 2024. Completion is slated for 2026.
The seller, Midtown Development, had acquired the site in 2011, paying just $4.8 million, according to property records. The appreciation reflects Midtown’s transformation from rail yards to a thriving district, home to retail and luxury rentals as well as condos.
Terra’s purchase comes just five days after it pulled out of the deal to acquire a 15.5-acre parcel between the MacArthur and Venetian causeways for $1.2 billion. Had it closed, the purchase would have gone down as one of the most expensive land acquisitions in the country, in gross terms.
But the developer remains active across Miami.
Terra is negotiating the buyout of an oceanfront condo building in Miami Beach for $500 million. In Edgewater, it’s partnered with hospitality powerhouse Major Food Group to develop a 58-story condo tower. The two-tower Mr. C Residences Coconut Grove is nearing completion later this year.
Julia Echikson can be reached at jechikson@commercialobserver.com.
