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Related Group, Cousins complete 50 Biscayne sales
The Related Group and its partner, Atlanta-based Cousins Properties (NYSE: CUZ), have closed on the sale of the remaining 120 residential units at 50 Biscayne, a 54-story, 528-unit luxury condominium tower in Miami.
The buyer is a partnership of the Related Group and private equity firm Lubert-Adler Partners. The units were sold for $30.3 million. The sales end Cousins’ involvement in the tower’s residential units, but the Cousins/Related partnership continues to own seven commercial condominium units in the building.
Peter Zalewski, who tracks closing activity through his Condo Vultures Realty, said this is the second bulk buy at 50 Biscayne. An additional 26 units were purchased by 50 Biscayne Suites LLC – an entity whose ownership isn't clear.
Zalewski believes the bulk buying strategy is to rent the units to cover the maintenance and taxes, then sell them in about five years, when the market should be better.
Since delivering 50 Biscayne, the Cousins/Related partnership has closed the sale of the 528 residential units and six commercial units. Cousins’ share of the pretax profit on the project to date is estimated to be about $18 million before minority interest.
“Quality product tends to succeed even in difficult markets, and 50 Biscayne is a prime example of that. The building has weathered a turbulent South Florida condominium market and produced better-than-expected results,” Cousins Chairman and CEO Tom Bell said. “We thank Jorge Perez, Thomas Daly and the Related team for being a top-flight partner.”
Article from the South Florida Business Journal:
http://www.bizjournals.com/southflorida/stories/2008/08/04/daily8.html
The buyer is a partnership of the Related Group and private equity firm Lubert-Adler Partners. The units were sold for $30.3 million. The sales end Cousins’ involvement in the tower’s residential units, but the Cousins/Related partnership continues to own seven commercial condominium units in the building.
Peter Zalewski, who tracks closing activity through his Condo Vultures Realty, said this is the second bulk buy at 50 Biscayne. An additional 26 units were purchased by 50 Biscayne Suites LLC – an entity whose ownership isn't clear.
Zalewski believes the bulk buying strategy is to rent the units to cover the maintenance and taxes, then sell them in about five years, when the market should be better.
Since delivering 50 Biscayne, the Cousins/Related partnership has closed the sale of the 528 residential units and six commercial units. Cousins’ share of the pretax profit on the project to date is estimated to be about $18 million before minority interest.
“Quality product tends to succeed even in difficult markets, and 50 Biscayne is a prime example of that. The building has weathered a turbulent South Florida condominium market and produced better-than-expected results,” Cousins Chairman and CEO Tom Bell said. “We thank Jorge Perez, Thomas Daly and the Related team for being a top-flight partner.”
Article from the South Florida Business Journal:
http://www.bizjournals.com/southflorida/stories/2008/08/04/daily8.html
Views: 24
Replies to This Discussion
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Permalink Reply by Birute on
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The deal is not bad: around 250K per unit! And somebody willl pay for maintenece of that wonderful pool area:).. Just not clear how it will turn out in the long run. Aparently the buyer will have majority of votes in the association and will be controlling "the market prices" in 50 Biscayne.
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Permalink Reply by Alex (MUL) on
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Birute said:The deal is not bad: around 250K per unit! And somebody willl pay for maintenece of that wonderful pool area:).. Just not clear how it will turn out in the long run. Aparently the buyer will have majority of votes in the association and will be controlling "the market prices" in 50 Biscayne.
I think the best thing about it is that the maintenance fees for those units will be paid and the other owners (hopefully) won't get hit with a special assessment. Some of those units were probably even already rented out by the developer. The building seems very occupied compared to before.
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Permalink Reply by Antonios on
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there are 528 units so the owner will not have a majority vote. A purchase like that is certain to be a long term investor planning on waiting out the downturn in the market due to the over supply. At an average price of $250k i'd be curious what kind of units they purchased. That is definitely good news for all of us since the fees will definitely get paid.
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