Oak Row Equities In Talks to Buy Aimco’s Miami Waterfront Property for About $500M
By Julia Echikson November 14, 2024 6:10 pm
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Oak Row Equities is in talks to buy Aimco’s waterfront assemblage in Miami’s Brickell district for about $500 million, Commercial Observer has learned.
If Oak Row’s deal closes, it would top Ken Griffin’s $363 million record purchase of a 2.5-acre parcel two years ago. Griffin’s vacant site, which sits a block south of Aimco’s assemblage, will be turned into a 54-story office tower for his financial companies, hedge fund Citadel and market maker Citadel Securities.
Aimco’s 4.25-acre property — at 1001 and 1111 Brickell Bay Drive — includes a 32-story office tower and a 31-story rental building called Yacht Club Apartments. Together the sites offer 485 feet of continuous Biscayne Bay frontage.
Oak Row intends to redevelop the property, likely into a luxury condominium complex. The parcel is zoned for a development that’s over 3 million square feet with several towers rising 1,049 feet, according to CBRE, which is marketing the property on Aimco’s behalf.
Last year, the Denver-based investor put the two-building property on the market, seeking as much as $650 million, according to The Real Deal.
Oak Row, led by Erik Rutter and David Weitz, has signed a letter of intent and put down a refundable deposit, said sources familiar with the talks.
In a Securities and Exchange Commission filing released last week, Aimco acknowledged that it’s continuing “to advance the sales process,” but said it would comment only after “a definitive agreement has been executed and buyer deposits have become nonrefundable.”
While the purchase could close in the next quarter, it remains a tall task, given the size of the acquisition and the strained state of the debt market.
It’s also unclear whether other buyers are interested. The sources added that, although Miami development heavyweights Related Group, 13th Floor Investments and Terra had previously expressed interest in the site, all have passed, at least for now.
If Oak Row closes on the $500 million sale, it would be its largest endeavor yet. In Wynwood, the Miami-based developer completed Oasis, a mixed-use complex where Spotify has an office. Another Oak Row mixed-use development, where Amazon is in talks to sign a lease, remains under construction.
Last year, the Miami-based developer secured a $181 million construction loan for a 41-story tower in Miami’s Edgewater neighborhood.
For Aimco, the sale would mark its latest offloading of a Miami property. The apartment giant is under contract to sell The Hamilton rental tower and a nearby developable parcel, also in Edgewater, for a combined $204 million.
Representatives for Aimco did not respond to requests for comment. A spokesperson for Oak Row did not provide a comment by publication.
Julia Echikson can be reached at jechikson@commercialobserver.com.
