Concerns are rising about whether a $190 million land deal for 10 acres in Greater Downtown Miami near the Adrienne Arsht Center For The Performing Arts will close before the end of the year contract deadline.
The Terra Group, the Miami condo developer that built the nearby Quantum on the Bay and 900 Biscayne towers, is under pressure to close by Dec. 31 on the undeveloped land east of Biscayne Boulevard and west of the Miami Herald newspaper headquarters. The land deal does not include the Herald's headquarters, which fronts Biscayne Bay.
McClatchy Co., the owner of the Miami Herald, is the seller under a contract originated in 2005 by the newspaper's former owner Knight Ridder.
"If the deal doesn't go through, we have a valuable piece of land we can sell to someone else," Elaine Lintecum, treasurer of California-based McClatchy, is quoted saying in the Miami Herald.
Terra Group secured the land contract at the height of the condo boom with plans for a mixed-use development that included residential, office and retail space. The Greater Downtown Miami market has since plummeted as residential financing dried up and about 21,500 new condo units have come onto the market.
Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter's blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures DatabaseTM .
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