In a landmark deal set to reshape Miami's skyline, a prime waterfront site in the city's bustling financial district is poised to change hands for $520 million, according to a recent regulatory filing. This transaction, slated to be the largest land deal in Miami's history, involves the sale of 1001 Brickell Bay Drive and 1111 Brickell Bay Drive by Apartment Investment & Management Co. (Aimco) to an entity managed by Erik Rutter and David Weitz, founders of Oak Row Equities.
The 4.25-acre property, featuring 485 feet of continuous water frontage facing Biscayne Bay, is situated in the heart of Brickell, a neighborhood that has experienced significant growth in recent years. The area has become increasingly attractive to financial companies and new residents, contributing to its booming real estate market.
The deal's value could potentially increase to $540 million, depending on certain financing arrangements. This surpasses the previous record set by billionaire Ken Griffin's $363 million purchase of a development site in 2022.
Oak Row Equities, a New York and Miami-based property company with $2 billion in assets under management, is partnering with Mariposa Real Estate for this acquisition. The buyers envision a transformative project for the site, which currently houses an office tower and apartment property. Zoning regulations allow for the construction of several towers up to 1,049 feet tall.
Erik Rutter, co-founder of Oak Row Equities, described the Brickell site as a "once-in-a-lifetime opportunity," citing its unique combination of zoning, site geometry, bay frontage, and location. The firms have announced plans to develop ultra-luxury condos on the parcel, although specific details of the project remain undisclosed.
This deal comes at a time when Brickell's real estate market is showing remarkable strength. According to a report by CBRE, the office vacancy rate in the Brickell district stood at 11.9% at the end of September, significantly lower than the U.S. average of 19%. Average asking rents in the area were $88.69 per square foot, with some deals closing at prices comparable to those in Manhattan.
For Aimco, a Denver-based real estate investment trust, this sale represents a significant divestment. The tower at 1001 Brickell was the company's only office property, with their portfolio primarily consisting of 5,600 apartment units across eight U.S. markets as of September 30.
The transaction is scheduled to close as early as March.