Condo owners at the
roughly 254-unit Bay Park, 3301 Northeast Fifth Avenue, have
received three written offers since May. The latest is $150
million from Aman Group, led by Miami-based broker, investor
and developer Vivian Dimond. (Aman is not affiliated with
the ultra luxury hotel group called Aman Resorts.) Dimond
declined to comment.
The $150 million offer would break down to close to $600,000
per unit, though the actual price would vary depending on
the unit size.
The proposal follows offers from Bomel Companies – for $145
million – and from Miami-based Beach Hill Capital Partners
for $130 million. Beach Hill, which declined to comment,
increased the buyout offer to $135 million in early August.
The condo association, attorney and
property manager for Bay Park did not respond to requests
Vivian Dimond with Bay Park Towers
Developers have long
targeted older condo buildings along South Florida’s
waterfront to buy out owners — and then knock the buildings
down — and build new luxury condo towers.
But even more buyout activity is appearing in the wake of
the Surfside collapse that killed nearly 100 people.
Champlain Towers South in Surfside was up for its 40-year
recertification and had just begun repairs when it came down
in late June. Unit owners will often have to finance major
repairs via special assessments or loans. In Miami-Dade
County, the first recertification is at 40 years, and then
every decade after that. Many buildings are behind in the
process, which is now under the microscope following the
Bay Park was developed in 1961. The property includes a
13-story building and a 14-story building, with more than
211,000 square feet combined, as well as parking, a tennis
court and a pool. It’s zoned T6-36A-L, which allows for at
least a 36-story building.
Dimond, an investor, is also managing broker of Brown Harris
Stevens in greater Miami-Dade. BHS would broker the deal, if
it is accepted by more than 95 percent of the unit owners.
Dimond’s entity initially offered $140 million, but raised
it to $150 million Sept. 1.
Bomel Companies has been in talks with the building’s
homeowners association since June, according to a letter
dated Aug. 23 from Douglas Elliman Florida CEO Jay Parker.
Parker, who declined to comment, wrote that Bomel formed a
special purpose LLC for the proposed acquisition.
“We have been working diligently, studying this property
since it was brought to our attention in June, and would
have made our offer sooner but were delayed by 3rd party
consultants’ availability due to the delays created by the
Champlain Towers tragic disaster,” according to the letter.
Bomel would pay 30 percent in cash and finance the rest with
a mortgage. The company has built projects in California,
Hawaii, New York, Miami and Israel, according to the letter.
Bay Park is just south of the Hamilton on the Bay apartment
complex, owned by apartment real estate investment trust
Aimco. The company recently canceled the leases of all of
its tenants as it continues to gut-renovate the building. At
the same time, it has been assembling land surrounding the
OKO Group, The Trump Group, and Dezer Development have all
been successful at buyouts and condo terminations in South
Florida, replacing those older buildings with waterfront
luxury condo towers. A joint venture between Related Group
and Two Roads Development recently closed on the majority of
units at the oceanfront Carlton Terrace in Bal Harbour, and
Mast Capital did the same at an older oceanfront building in
In Edgewater, about 10 blocks south of Bay Park, Melo Group
recently launched sales of the first of two towers at its
planned Aria Reserve project at 711 Northeast 23rd Terrace.
The developer spent a decade buying more than 80 parcels,
including condo units, to complete the 5-acre assemblage.