The Meruelo family dropped a $200 million bid for the historic Casablanca beachfront resort in Miami Beach, real deal Already learned.
Brokerage firm Colliers sent owners formally notifying them of Richard Meruelo’s cancellation of the deal, according to a letter from the brokerage firm Colliers, which has about 350 residential and commercial units at 6345 Collins Avenue. , which has been approved by more than 95% of the owners. The letter states that Meruelo’s CASABX LLC “chooses not to proceed with the purchase contract.”
A Colliers team led by Gerard Yetming and Ken Krasnow brought the nearly 2-acre property at 6345 Collins Avenue to the market last summer. The 10-storey building was built in 1948 and designed by architect Roy France. Many units are operated as short-term leases.
Colliers said the buyer decided not to proceed with the deal because of “persistent difficulties” [and] Uncertainty in capital/debt markets. ”
Colliers may start talks with another buyer. Developers such as Terra, 13th Floor Investments, Related Group and Mast Capital have all attempted, are in the process of or recently completed Miami Beach acquisitions.
Based on a total floor area of 200,337 square feet, the $200 million price tag equates to nearly $1,000 per square foot.
Meruelo’s bid is reportedly contingent on the sale of his family’s Deauville Beach Resort property at 6701 Collins Avenue to billionaire developer Steve Ross.
Ross’ purchase is contingent on voters approving a referendum last November that would have allowed Ross to build a larger project on the Deauville estate than current zoning allows.
Voters rejected the referendum, sources said, but Ross is reportedly still interested in buying Deauville.
The offer for the Casablanca property was made without such contingencies in mind, Alex Steuben, president of the Casablanca Condominium Association, said in October. Steuben did not immediately respond to a request for comment.
Developers have aggressively snapped up older waterfront properties along the coast, particularly since the deadly apartment collapse in Surfside two years ago. But those deals are complicated and made more challenging by tougher condo safety legislation requiring owners to maintain their properties even if they end up being demolished, and by more volatile capital markets.
The Meruelos family developed the Akoya apartment building in 2004 at 6365 Collins Avenue just north of Casablanca.
As a significant building in the North Beach Resort Historic District, Casablanca is protected from demolition unless the building is declared unsafe or the Historic Preservation Board votes five out of seven to remove it. Buyers can seek approval from the same board to add floor area proportions and additional heights totaling approximately 45,000 square feet.
The Deauville Hotel is also a historic building, but it was ordered to be demolished last year after a report submitted by the Meroulos family found it unsafe. The family is accused of deliberately leaving the property in disrepair so it could be sold or redeveloped.
Richard Meruelo, the son of developers Belinda and Homero Sr., is at the center of a highly litigated divorce from his ex, Maria, involving Their former home and other real estate in the city.
