MIAMI, FL - Miami-based developer Mast Capital closed on the 2.8-acre site located at 1420 S Miami Ave for $103 million. The site is located on the southern edge of the Brickell Central Business District market and represents one of the last remaining raw parcels of land available to build a high-rise development of scale in the area.
Mast Capital submitted site plans for a master-development totaling 2.6 million square feet across three residential towers, including an 80-story luxury condominium tower with 400 residences, and two multifamily towers, 50 stories and 60 stories each, with a combined 850 luxury apartments. The condominium tower will be affiliated with a luxury lifestyle brand with plans to provide resort-style amenities, including food and beverage services exclusively for resident use. The development will also include 1,650 parking spaces and ground-floor retail on South Miami Ave.
Mast Capital partnered with private equity real estate firm Rockpoint for acquisition of the multifamily component, the third joint venture between the two firms in 2021.
The site has been highly anticipated and coveted for development dating back 15 years. In the mid-2000s, the site was planned as “Capital at Brickell”, a two-tower project consisting of residential, office, hotel, and retail uses. Foundation work began in 2007, but the project was abandoned during the Great Recession. In 2014, a China-based corporation acquired the site and received plan approvals for a project that included two towers spanning 75- and 73-stories. However, this development was also shelved after years of uncertainty regarding the future of the project. Mast Capital and the seller agreed to an off-market purchase of the site earlier this year.
Mast Capital has emerged as one of South Florida’s most active real estate developers since the start of the pandemic. Earlier this year, the developer closed on the high-profile condo assemblage at 5333 Collins Avenue with Starwood Capital. Mast Capital’s current development pipeline includes new residential developments slated to break ground within the next year in Miami, Miami Beach, Palm Beach County, and the Tampa metro area.
“We are excited by the potential to create a thoughtful, iconic project that will define and anchor south Brickell. This project will transform the character of the neighborhood and it is a great privilege to be given this rare opportunity,” said Camilo Miguel, Jr., CEO and founder of Mast Capital. “We believe Brickell will continue to outperform from the ongoing demographic shift. Our vision is to offer a differentiated product that stands out from the current offerings and appeals to a wide variety of residents.”
Brickell has achieved robust rent growth and outpaced the market at large in 2021. Since Q1 2021, rents for condos built in Brickell over the last five years increased over 30% on the back of strong in-migration to Miami. While the influx of new residents to the area seeking a cosmopolitan lifestyle, warm weather, and favorable tax environment is not new, this trend has dramatically accelerated since mid-2020.
”While South Florida was seeing strong growth prior to the pandemic, it became evident to us early on that the pandemic would result in further tailwinds for South Florida. We worked hard to identify attractive investment opportunities and as a result have had a very active 18 months. The closing of the Brickell site is the culmination of a very exciting 2021 for Mast Capital,” added Camilo Miguel, Jr.
About Mast Capital: Established in 2006, Mast Capital is a value-oriented real estate investment company with integrated development and asset management teams. Mast Capital has made successful acquisitions in the residential, hospitality, office, retail and land sectors, and targets opportunistic and value-add investments in existing property, ground-up development, distressed real estate, and note purchases. The firm employs a sophisticated approach to structuring its acquisitions, maximizing value to its investors while providing creativity and flexibility to sellers and other third parties to execute highly complex transactions. Mast Capital is led by a senior management team with over 60 years of combined real estate experience and transactions totaling more than $3.5 billion. For more information on Mast Capital’s portfolio, visit www.mastcapital.com
About Rockpoint: Rockpoint Group, L.L.C. (“Rockpoint”) is a real estate private equity firm headquartered in Boston with additional domestic offices in San Francisco and Dallas. Rockpoint employs a fundamental value approach to investing and targets select product types located in major markets in the United States. Rockpoint utilizes a consistent strategy across distinct return profiles through its opportunistic and growth and income investment programs. Rockpoint targets assets with intrinsic long-term value, at attractive prices relative to replacement cost and stabilized cash flows, and with particular emphasis on value creation opportunities and complex situations. Since 1994, Rockpoint’s co-founders with others have sponsored 16 commingled funds and related co-investment vehicles through Rockpoint and a predecessor firm and have raised approximately $26 billion in capital commitments. As of September 30, 2021, Rockpoint’s investment team with others has invested or committed to invest in 460 transactions with a total peak capitalization of approximately $69 billion (inclusive of fund equity, co-investor equity and debt). To learn more about Rockpoint, visit www.rockpoint.com