Continuum Again Offers $141M to Buy Out Oceanfront Condo Building Near Miami Beach
By Julia Echikson October 2, 2024 2:26 pm
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Is the third time the charm in The Continuum Company’s quest to buy out an oceanfront condo building just north of Miami Beach?
Last month, the New York-based developer offered $141 million to purchase the Four Winds condominium, a 12-story building at 9225 Collins Avenue, just four blocks from the site of the deadly Champlain Towers South condo collapse in Surfside, Fla., Commercial Observer has learned.
It’s Continuum’s third attempt to buy the 139-unit building, which was constructed in 1967. This spring, the developer, led by Ian Bruce Eichner, put forth the same offer: $141 million. The year prior, it proposed $125 million, an offer that the Four Winds condominium board rejected.
Another high-profile developer, Naftali Group, had also made buyout attempts. Between 2022 and 2023, the New York-based developer proposed $100 million and $115 million to buy out the building.
Continuum’s latest offer comes as the Four Winds condo association levies the second round of payments for its 50-year recertification, which is expected to cost $5.8 million in total, according to documents shared with CO. Per a source, about 40 condo owners have yet to pay their share. The association plans to take legal action.
Continuum is going around the board and has sent individual bids to condo owners. Colliers’ Mika Mattingly is representing the developer.
The offer has put stress on some of the residents who have paid the assessment and now fear they could be displaced. “It’s despicable,” one resident told Commercial Observer. “[Continuum] is scaring people.”
A representative for Continuum declined to comment. Representatives for the Four Winds could not be reached for comment.
Following the collapse of Champlain Towers South building, which killed 98 people in 2021, Florida lawmakers passed condo reforms, mandating that condo associations create savings funds to pay for structural repairs. By the end of the year, inspections must be done for all condominiums 30 years or older.
Developers have also seized on the opportunity, putting forth buyout offers, providing an exit ramp for some strapped condo owners who face mounting special assessment bills. Once they have enough units, developers will terminate the condo association, a procedure that grants them complete control of the property, which they will typically demolish to build luxury condos.
In nearby North Miami, Continuum bought out a 267-unit condominium for an undisclosed amount, where it has proposed a 20-story luxury condo development.
But buyouts and condo termination are difficult to accomplish. They commonly require the approval of at least 75 percent of owners, and often as much as 95 percent. Earlier this year, a judge blocked the $150 million termination of the Biscayne 21 condominium in Miami, putting into question a long-standing precedent, making buyouts even more difficult. The developer, Two Roads Development, has vowed to appeal the ruling.
Julia Echikson can be reached at jechikson@commercialobserver.com.
