The Genting Group has sold its downtown Miami property to an investment group led by Terra for $1.2 billion, making it possibly the most expensive urban land sale in Florida and one of the most valuable sites in the country.
“Very proud of longtime Miamian David Martin for successfully purchasing what I consider to be the most valuable piece of property in America,” “I can’t wait to see what’s in store for our city.” Miami Mayor Francis Suarez.
The property, located at 1431 North Bayshore Drive, covers 15.5 acres and was put on the market in November by Avison Young. Five bidders had offered over $1 billion a month ago. The property is located in the Arts & Entertainment District of downtown Miami, near the Kaseya Arena and the Adrienne Arsht Center for the Performing Arts. Terra and Martin's SmartCity Miami will acquire the property later this year, according to a press release. Terra has been active in South Florida, developing luxury condominiums, apartments, hotels, retail, and office spaces.
“The scale and location of this site offers the opportunity to do something spectacular, something that all Miamians can the pride in, and we will deliver nothing short of that. For now, our team is focused on understanding the full potential of the property and the surrounding area. Our vision will evolve as we learn more. Over time, we will arrive at a plan that elevates Downtown Miami, improves access to the waterfront and is welcomed by our community.” David Martin, CEO of Terra Group.
Genting Group paid about $17M per acre or $236M for the 14-acre site of the Miami Herald.
Who is Terra Group?
Before we dive into the acquisition, let's talk about Terra Investment Group first. Terra is a real estate development and investment firm based in Miami. The company was founded in 2001 by Pedro Martin and is spearheaded by visionary son David Martin. Terra has developed over $8 billion worth of properties and over 5,000,000 sqft of commercial and residential space. Terra has also planted over 1,000 trees. The company currently has a portfolio of more than $4 billion in assets under management, including luxury residential buildings, hotels, and commercial spaces. It has been ushering the next generation of buildings in Miami with transformative buildings like Park Grove done in conjunction with Related Group, Grove at Grand Bay, Eighty Seven Park, Five Park and more. Most recently, Terra has worked on Mr. C and now Villa in partnership with One Thousand Group and Major Food Group and The Well Bay Harbor.
Who is Genting Group?
Genting Group is a Malaysia-based conglomerate with interests in gaming, hospitality, and real estate. The company is best known for its Resorts World brand of integrated resorts and casinos, which operates in several countries, including the United States. In 2011, Genting Group acquired the 14-acre property in Downtown Miami where the Miami Herald building once stood.
Overview of Downtown Miami Property
The Genting Group's Downtown Miami property is located at 1 Herald Plaza and is a prime waterfront location in the heart of Miami. The property has been vacant since the Miami Herald building was demolished in 2014. The site has been the subject of several development proposals over the years, including a massive mixed-use project that would have included a casino, hotels, and residential units. However, none of these proposals came to fruition.
Original plans of the site -Resorts World Miami
Genting Group's $3 billion project, Resorts World Miami, was to be destination resort on this prime waterfront location in Florida. The resort was to feature several towering skyscrapers with designs inspired by a coral reef that would have serves as the focal point of a three-mile Baywalk, activating the city's waterfront. This mixed-use development would have covered approximately 10 million square feet, making it one of the most extensive projects in the state's history.
"Resorts World Miami includes a series of four hotels with a total of 5,200 rooms and two residential towers featuring 1,000 units. The towers take on sculptural forms that change from every perspective. Each building is designed with outside balconies adorned with LED-lit exteriors, creating a jewel-like effect that will illuminate the Miami skyline each night. The Destination Resort will include a super-luxury hotel, a contemporary hotel, a convention hotel, and a family hotel, offering a lodging option for each segment of the market."
Details of the $1.2 billion acquisition
Smart City Miami, entity led by David and his father Pedro, Terra Investment Group has acquired Genting Group's Downtown Miami property for $1.2 billion. Closing takes place soon. The sale includes the 14-acre site, as well as the rights to build up to 5 million square feet of mixed-use development. The sale price represents a significant increase from the $236 million that Genting Group paid for the property in 2011. Details of what is to come on this site are forthcoming. But, we are sure that adjectives like impressive, transformative, game-changing will be some of the words to describe it.
Future plans for Terra Investment Group's Downtown Miami property
Terra has not yet announced its plans for the Genting Group's Downtown Miami property. However, the company has a track record of developing high-end residential and commercial properties in urban areas, and it is likely that any development on the site will be in line with that focus. The company has also expressed a commitment to sustainable development and is likely to include environmental considerations in its plans.
Reaction from industry experts
The acquisition has generated a lot of buzz in the real estate industry, with experts weighing in on what this means for the Miami market. Experts have praised the acquisition, given the property's prime location and potential for development by Terra.
Miami Herald's coverage of the acquisition
The Miami Herald, the former occupant of the property, has been closely following the news of the acquisition. In a recent editorial, the paper praised Terra Investment Group for its commitment to sustainable efforts in the city.
Potential impact on the Miami real estate market
The acquisition of the Genting Group's Downtown Miami property has the potential to have a significant impact on the local real estate market. The property is located in one of Miami's most desirable neighborhoods, and the development of the site could further solidify Miami as the city of tomorrow.
Future plans for Terra Investment Group's Downtown Miami property
Terra Investment Group has not yet announced its plans for the Genting Group's Downtown Miami property. However, the company has a track record of developing high-end residential and commercial properties in Miami that have transformed their respective neighborhoods and it is likely that any development on the site will be in line with that focus.
If you are interested in learning more about the Miami real estate market, contact us today to speak with one of our experienced agents at THE APT TEAM.
Main Photo source: Profilemiami
