Breaking News: Terra-led Group Withdraws $1.2B Bid for Genting’s Miami AssemblageJune 23, 2023
According to sources, Developer David Martin’s highly anticipated $1.2 billion acquisition of Genting Group’s downtown Miami assemblage has been canceled. Martin, along with his firm Terra, led Smart City Miami. This investment group had entered into a contract to purchase the 15.5-acre property in Miami’s Arts & Entertainment District. The site, which is adjacent to the Kaseya Arena and near the Adrienne Arsht Center for the Performing Arts, was poised to become the most expensive urban land sale in Florida and one of the priciest in the entire country. The news of Terra’s involvement significantly impacted the market, providing confidence to investors and creating momentum for other deals during an uncertain time.
With the deal’s cancellation, Genting is expected to negotiate with one of the four remaining bidders who offered over $1 billion for the assemblage. However, the current state of the capital markets poses challenges, as securing financing for such a substantial transaction may prove difficult for a potential new buyer. Commercial sales have experienced a sharp decline, and lenders have become more cautious due to rising interest rates and the aftermath of recent bank collapses.
The property, located at 1431 North Bayshore Drive, was initially listed on the market in November by Avison Young, with Michael Fay and John Crotty leading the brokerage team. These brokers were also involved in the sale of the site where the Surfside condo collapse occurred, which took place a year ago and amounted to $120 million.
In an official joint statement from Smart City and Genting, it was revealed that the Terra-led investment group had requested an extension and amendments to the terms of the deal for the Genting assemblage. However, Smart City ultimately decided to end its current bid while expressing continued interest in the site, leaving the possibility of future offers open.
Genting, a Malaysia-based gambling operator, intends to retain ownership of the Hilton Miami Downtown Hotel and the Omni Center located north of the sold properties. The site sold to Terra’s Smart City represents more than half of Genting’s holdings, encompassing the former 14.6-acre waterfront headquarters of the Miami Herald. Genting had acquired the Herald building in 2011 for $236 million, setting a record for land sales in Miami-Dade County at that time. The building was subsequently demolished in 2015, and the site has since been leased out for various events, including the Art Miami and Context fairs.
Despite the setback, Terra remains an active participant in South Florida, boasting numerous ongoing projects in the region. The firm has also contracted to purchase Castle Beach Club, an aging condominium building in Miami Beach, for $500 million. Previously, the Related Group and 13th Floor Investments had planned to acquire the property for the same amount but withdrew from the deal in October.