Continuum Offers Surfside Condo Owners $141M in Latest Buyout Attempt
By Julia Echikson June 27, 2024 5:15 pm
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Ian Bruce Eichner’s Continuum Company has offered $141 million to buy an aging oceanfront condominium in Surfside, Fla., in the latest condo buyout attempt following the deadly collapse of the Champlain Towers South building three years ago, Commercial Observer has learned.
The Four Winds condo building at 9225 Collins Avenue, just four blocks north of the Champlain site, was built in 1967 and features 140 units. Continuum’s latest purchase offer went out in late March and remains under discussion. Colliers’ Mika Mattingly, the broker representing Continuum, emailed condo owners Wednesday, stating that contracts would be sent out after a review by a lawyer.
A representative for Continuum Company denied knowledge of the email, adding that no contracts have been signed.
“Although we have been in communication with certain residents of Four Winds condos in Surfside and held a town hall meeting for the residents this past spring, we are unaware of any written communication that has been distributed at the building or to any residents since that time. Neither Continuum nor any of the residents have signed any contracts for the sale of condominium units at the property,” according to a statement sent to CO.
Mattingly declined to comment.
The cash offer marks Continuun’s second attempt to buy the Four Winds. In May 2023, the developer offered $125 million, according to documents obtained by Commercial Observer. The Four Winds condominium board rejected the offer.
Before Continuum’s first offer, another real estate heavyweight, Naftali Group, offered about $100 million in 2022, said a person with knowledge of the proposed deal. The following year, the New York-based developer upped the ante with a $115 million offer.
This time around, Continuum Company has gone around the condo board and handed out sale offers directly to condo owners, according to a letter sent to owners penned by Continuum’s lawyer, Darrin Gursky of Haber Law. The deal would close once Continuum receives approval for the development, likely a luxury condo building, that will replace Four Winds.
A condo owner described the tactics as “ruthless” and believes Continuum is trying to scare owners into selling before the first payment for renovations tied to the building’s 50-year recertification are due next week. The full cost of the works is pegged at $5.8 million.
In the wake of Champlain’s collapse, Florida Gov. Ron DeSantis signed into law legislation forcing condo buildings 30 years old and older to undergo structural inspections and have enough set aside to fund needed renovations by the start of 2025. The looming repair costs have presented an opportunity for developers to scoop up waterfront condos, which command top dollar among homebuyers.
But even in this environment, condo buyouts remain difficult to close. A vast majority of owners must agree to sell, often a tall order when dealing with hundreds of proprietors. According to a presentation shown to Four Winds owners, Continuum wants to own 95 percent of units before terminating the condo association, a move that would grant it control of the building and which typically precedes a demolition.
In another, separate termination, Florida’s Third District Court of Appeal sided with 10 unit owners at the Biscayne 21 condo building to block Two Roads Development’s termination of the 192-unit building, The Real Deal reported in April. The developer plans to take the case to the Florida Supreme Court.
In recent years, Continuum has stepped up development activity in the Miami area. Last year, it bought out the waterfront Mariners Bay Condo in North Miami, where it has proposed building a 267-unit luxury condo development.
Just last week, Continuum paid $75 million for a 4.4-acre waterfront parcel next door to where it’s planning to build a 31-story condo tower.
Julia Echikson can be reached at jechikson@commercialobserver.com.
