Miami-based Related Group of Miami LLC paid $29 million for a waterfront site north of downtown Miami, up from the $11 million early last year.
A joint venture between Wellington-based Eastview Realty Advisors LLC and New York-based GTIS Partners Lt. just paid $28.1 million for another waterfront site in the same Edgewater neighborhood. That is nearly twice the $14.5 million the seller paid for the debt on the site and 21 unsold condos in an abutting building in 2011.
Miami-based Melo Group Inc. late last year acquired a parcel steps from Biscayne Bay in the same area for $5.32 million, up from the $2.65 million the seller paid for the debt on the property in 2010.
A waterfront development site is now under contract for more than twice the $9.1 million the seller paid for in 2011, according to several sources.
These deals show one of the most drastic recoveries in South Florida land values as a new condo boom makes people forget about the housing bust.
The development focus in Edgewater is between Biscayne Bay and Biscayne Boulevard and between I-395 and I-195.
The neighborhood saw a development boom during the last real estate bubble, and land traded at exorbitant values in the months before the housing collapse. But back then, the new rental and condo projects were considered to be “on the fringe,” said real estate broker Alicia Cervera with Miami-based Cervera Real Estate Inc.
With little room left to develop in downtown Miami and the Brickell area, the next logical frontier is Edgewater, said developer Andy Hellinger, who as a court-appointed trustee led the repositioning of the failed 346-unit Paramount on the Bay at 2020 N. Bayshore Drive.
Today, Paramount is considered an inspiration for many of the Edgewater developers as unit trade for more than $600 a square foot, said Jaret Turkell, a broker with Holliday Fenoglio Fowler LP in Miami. He help brokered the Related Group deal. Condos at Paramount began selling in the high $300 a square foot last year, said Hellinger, with Coral Gables-based Hellinger Penabad Cos.
“Developers are saying, ‘Hey, I can build new product and get $600 a foot,’ ” Turkel said.