LA Developer Buys Aging Coconut Grove Rental for $11M

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L.A.-based developer Philip Rahimzadeh paid $10.9 million for an aging multifamily building in Miami’s Coconut Grove neighborhood.

Called Casa Linda, the six-story building houses 45 units at 3300 South Dixie Highway, just north of Bird Avenue. The 54,316-square-foot building, constructed in 1972, sits on 0.7 acres.

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The sale closed in five days, with Rahimzadeh using a 1031 tax exchange, which allows buyers to defer capital gains taxes, according to ColliersVirgilio Fernandez, who brokered the transaction.

The seller, Trizel Commercial Real Estate, had purchased the property for $1.9 million in 2001. 

Rahimzadeh plans to renovate the existing building and raise the “below-market rents,” according to Fernandez. 

“The buyer opted to enter the South Florida market, attracted to our favorable business climate and robust fundamentals, a sharp contrast to the elevated taxes, high prices, and rent control prevalent in California and other states,” the broker said in a statement.

In L.A., Rahimzadeh is the managing director of Core Development Group, which specializes in repositioning aging buildings. In July, the investor listed a Tuscan-style mansion in Bel-Air for $37 million, according to the Robb Report

Julia Echikson can be reached at jechikson@commercialobserver.com.