13th Floor Investments is assembling a prime oceanfront site in Miami Beach, having purchased an aging resort along Collins Avenue next door to a condo property it terminated last year.
The Miami-based developer paid $73 million for the Westgate South Beach Oceanfront Resort at 3611 Collins Avenue, located north of the Faena district in the Mid-Beach neighborhood, property records show.
The three-story building, which functions as a timeshare resort, was built in 1938 and houses 46 units on 0.8 acres.
The purchase comes eight months after 13th Floor Investments terminated the condo association of All Seasons property, which neighbors the Westgate resort. The move grants 13th Floor Investments full control of the seven-story building, which was completed in 1980 and sits on 0.4 acres.
Combined, 13th Floor Investments’ assemblages span 1.18 acres, and is a likely target for condo development. Bank OZK provided a $51.9 million loan for both properties, according to records. A representative for the developer declined to comment on plans for the site or the price of the All Seasons property, divulging only that Opera Acquisitions LLC, managed by Valerio Spinaci, was a partner and responsible for assembling both properties.
Condo terminations are a growing trend among developers following the deadly collapse of the Champlain Towers South condominium, which was built in 1981 and was poorly maintained. As owners of similar aging condos face expensive assessments to fund repairs, some are opting to sell to developers, who often tear down the building to construct luxury condominiums.
Source: Commercial Observer