Major Condo Acquisition in Coconut Grove: Mast Capital and BH Group Team Up

Mast Capital, under the leadership of Camilo Miguel Jr., and BH Group, helmed by Liat and Isaac Toledano, have made headlines by acquiring a significant number of condos at Bayshore Park in Coconut Grove for no less than $20 million. This acquisition reflects a growing trend of luxury residential development in South Florida.

Significant Investment in Bayshore Park

• Location: The 39-unit Bayshore Park is located at 2545 South Bayshore Drive, just across from the popular Monty’s Coconut Grove restaurant and marina.
• Acquisition Details: The partnership has obtained over 75% of the units, facilitated by a $28 million loan from BridgeInvest, arranged through Scott Wadler and Mitch Sinberg of Berkadia.

This substantial investment positions Mast and BH for a redevelopment of the site into a luxury condominium building, capitalizing on the increasing demand for high-end living spaces in the area.

Historical Context of Acquisition

Bayshore Park, constructed in 1967, has been on Mast Capital’s radar since the mid-2010s:

• Initial Investments: Mast began its investment with a two-bedroom condo purchased for $240,000.
• Subsequent Acquisitions: Over the years, the company acquired 16 additional units, amassing a total investment of more than $5 million, with individual unit prices ranging from $261,000 to $450,000.

The recent deal includes 30 units—including previously held properties—indicating a strategic plan to consolidate ownership for further development.

Navigating Condo Buyouts: Challenges Ahead

Moving forward with the redevelopment will involve terminating the existing condo association, which requires a 75% ownership threshold based on Bayshore Park’s documents. However, Florida state law permits 5% of unit owners to block such a termination, potentially complicating the process.

Key Considerations:

• Complex Dynamics: Condo buyouts can be challenging due to the diverse motivations and expectations of multiple sellers.
• Tactics Employed: Developers sometimes acquire units one-by-one, often masking their identities to avoid alerting other owners.

The Luxury Development Boom in Coconut Grove

In recent years, Coconut Grove has witnessed a surge in luxury condo developments, with prominent figures like David Martin of Terra and the Pérez family’s Related Group establishing their headquarters in the neighborhood. This trend illustrates a broader shift in South Florida’s residential landscape.

Mast Capital’s Ongoing Projects

Mast Capital’s ambition in the region is reflected in its prior collaborations, like their recent transaction where BH acquired the Wake Biscayne Bay complex for $83 million from Mast, showcasing the firm’s strategic adaptability in the evolving real estate market.

Conclusion: Future Outlook

As developers increasingly target older buildings needing significant repairs, the trends following the Surfside condo collapse in 2021 amplify the spotlight on such acquisitions. Mast’s involvement in a prolonged buyout of the Amethyst building in Miami Beach further underscores the complexities associated with such investments.

With this latest acquisition in Coconut Grove, the partnership between Mast Capital and BH Group aims not only to reshape the skyline but to redefine luxury living in one of South Florida’s most sought-after neighborhoods.

For more insights on real estate developments in South Florida, visit The Real Deal.