MG Developer paid $19.5 million for a redevelopment site near Coconut Grove where the seller previously planned a mixed-use project, The Real Deal has learned.
In an off-market deal, Coral Gables-based MG’s affiliate, Merrick Parc LLC, acquired the 43,785-square-foot property with a small commercial building at 3898 Shipping Avenue, Jose Canero with The Canero Group said. Canero represented the buyer and the seller, an entity managed by Hector Castellon of Miami.
Castellon’s entity sold the redevelopment site for $6.5 million above its purchase price three years ago. In 2019, the seller paid $13 million for the property.
Last year, the city of Miami Design Review Board approved plans for Merrick Towers, a pair of 20-story buildings attached by a podium. The 387,568-square-foot project entailed 268 apartments, 29,000 square feet of offices, 6,342 square feet of ground-floor retail and a 288-space parking garage.
MG Developer is creating a completely new set of plans, but Canero said he could not comment on what the company intends to build on the property. Alirio Torrealba, CEO of MG Developer, did not return a phone message seeking comment.
Despite receiving approval for the mixed-use project, Castellon always intended to sell the property to a developer, Canero said. “His goal was to land bank it,” Canero said. “We thought the time was right now, as rents have gone up nearly double from three years ago.”
The building is currently leased to car dealership Infiniti Coral Gables on a month-to-month basis, Canero said. The property is also adjacent to a 20-story multifamily project with 254 apartments being developed by Mast Capital and AvalonBay Communities. Canero also sold that development site to the joint venture.
MG Developer builds luxury single-family homes, townhouses, boutique condominiums and rental projects in Coral Gables and South Miami. The firm’s townhome developments include the five-unit Althea Row completed last year, and the recently finished Biltmore Row, which has 10 units. MG Developer also developed Biltmore Parc, a five-story, 32-unit condo development at 718 Valencia Avenue.