Camilo Miguel Jr. Pursues Buyout of Oceanfront Miami Beach Condo Amidst LitigationSeptember 8, 2023
5313 Collins Avenue
Camilo Miguel Jr., in another endeavor to acquire an oceanfront condominium building in Miami Beach, is revisiting a challenging situation that has been entangled in litigation for over two and a half years. This renewed attempt comes through an affiliate of Miguel’s firm, the Coconut Grove-based Mast Capital, which has extended purchase offers to 28 unit owners at Amethyst. The 11-story, 120-unit condominium is located at 5313 Collins Avenue.
Sources familiar with the matter have indicated that Mast Capital offers $750,000 per unit. The revised contracts propose a mid-December closing date for this year. However, whether the unit owners will accept these contract terms and the offered price remains uncertain.
Mast Capital terminated a previous agreement with the same 28 unit owners late last year. Initially, the developer had acquired these contracts from Canero Group, and the stipulation was that these contracts were contingent on each other closing, this meant that if Mast acquired one unit, it had to secure all the units within a specified period. This provision remains in effect for two years following the contract cancellation.
Without the cooperation of this group of 28 unit owners, Mast Capital cannot reach the minimum requirement of controlling 80 percent of the building. This threshold is essential for the developer to gain control of the property and proceed with its redevelopment plans.
According to property records, the developer has successfully closed on eight units thus far, with the most recent closing in late June.
Mast Capital has expressed its commitment to working “in good faith” with the unit owners at Amethyst, aiming to finalize the purchase of the remaining units by the year’s end. Speaking through a spokesperson for the developer, Unit owner Lucia Delgado noted that it is in the owners’ best interest to sell, particularly in light of an impending significant assessment.
However, some Amethyst owners have grown increasingly frustrated with the delays and a perceived lack of communication from Mast Capital. The developer, originally expected to close on the units in the previous year, has faced criticism from unit owners for the prolonged process.
In July, two sellers outside of the group of 28 initiated legal action against Mast Capital, alleging breach of contract and seeking declaratory relief regarding the contract’s enforceability and the language used by the developer. This lawsuit came after Clifford and Maria Greenhouse entered into a contract in April 2022 to sell their unit on the second floor for $650,000. Still, the transaction had yet to be completed.
Shortly after the Greenhouses’ lawsuit, the condo association filed a lawsuit against Mast Capital, raising concerns about the deal’s handling. Around the same time, David Martin’s Terra also extended offers to unit owners at the building, committed to closing these sales by the end of 2024. Terra has indicated continued interest in the acquisition.
Mario Borda, a broker working with Mast Capital, emphasized that Terra’s offer had “delayed negotiations with other owners and confused owners who are under contract with Mast Capital.”
Mast Capital has entered into or had signed contracts with 85 sellers (excluding the group of 28), as outlined in a memo of understanding attached to the condo association’s complaint. These contracts would give Mast just over 70 percent ownership of the building. The developer’s offers have ranged from $350,000 to $850,000 per unit.
The identity of Mast Capital’s partners in the acquisition and redevelopment of Amethyst remains undisclosed. However, it is known that the company is collaborating with Barry Sternlicht’s Starwood Capital Group on developing The Perigon, located adjacent to Amethyst. Mast Capital began acquiring units in the La Costa condominium, part of The Perigon property, starting in 2021. This year, Mast Capital emerged as the winning bidder in the partition sale for the remaining ownership in La Costa. Despite being declared unsafe by the city of Miami Beach following the tragic Surfside condo collapse in 2021, La Costa still stands.
While condo buyouts are known for their complexity, developers continue to pursue such offers despite challenging market conditions. Notably, two years ago, Related Group and 13th Floor Investments successfully bought out the Carlton Terrace property in Bal Harbour. Other developers had previously attempted similar buyouts, including Vlad Doronin, Bruce Eichner, and One Thousand Museum developer Louis Birdman. Related and 13th Floor are currently pre-selling Rivage Bal Harbour, a luxury condo building planned for the oceanfront site.