Related Group Abandons Office Plan, Sells Terminal Island Site for $77M
By Julia Echikson July 10, 2023 2:26 pm
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Related Group has departed Terminal Island, selling the site of a proposed office development that had never gotten past the planning stage, which Citadel had briefly considered for a headquarters.
The Miami-based developer sold a 3.7-acre parcel on the island — which is along the MacArthur Causeway, just west of Miami Beach’s southern tip — for $77 million, property records show.
The buyer is Lincoln Property Company, a Dallas-based investor and developer, whose portfolio includes assets from all major commercial classes.
Related Group, led by the Pérez family, bought the site in 2013, paying nearly $10 million. It had originally wanted to build a 34-story luxury condo building on the land, which is surrounded by a marina, a U.S. Coast Guard station, and buildings owned by Miami Beach.
As Miami’s office market heated up during the pandemic, Related switched up its plans, proposing an office complex called One Island Park. In 2021, The Miami Beach Design Review Board approved the development, which would have been anchored by two five-story office buildings with ground-floor retail and a rooftop restaurant.
Citadel, the hedge fund led by billionaire Ken Griffin, and its sister trading company Citadel Securities, had explored setting up shop on the Terminal Island, buying a stake in Related’s development. But it ultimately chose to buy land in Brickell, where it’s now in the early stages of developing an office tower.
No construction took place at Related’s Terminal Island parcel. It’s unclear what Lincoln Property Company plans to build. A representative for the firm did not immediately respond to requests for comment. A spokesman for Related declined to comment.
Julia Echikson can be reached at jechikson@commercialobserver.com.
