Grove Waterfront part 2…

Ok I know what you are thinking $211 mil for 7 acres…..”Come on Jav that’s a bit of a reach” and yes it is (not by much) BUT I got you to come back for my follow up point about this deal the City is willing to do on your behalf (remember you own this land).

First to establish a basic value, I have a question for you City of Miami :

Do you know what the Coconut Grove Bank deal closed at?
You know those 5.2 acres up the street that Terra bought this year; Conveniently forgot about that deal?

$55 Millllllion dollars…..and say it in a Dr Evil voice…….

So lets do some Public School math and see where it takes us.

$55,000.000 / 5.2 acres = $10,576,923 per acre. (or $242.81 a ft)

With me so far?

Now we have 7 acres with approx 2.5 considered direct waterfront (remember the Bank is North of Bayshore and not waterfront) and lets apply the per acre price to our property and we get…..


That’s some dough…

“Hey Jav….where the hell you going with this?”

Lets work out a little investment scenario using this “Value” as our base. (BTW; Property is probably worth closer to $85-90 Mil but lets use the $75 Mil for shits & giggles……)

A Lease return required by an investor is usually 7% annual, this does not mean that the investor will not ask for more (10%, 12% or anything higher) but for this scenario lets stick with  a basic 7%.

So here we go with some more Public school math.

75,000,000 (value) x 7% ROI (Return On Investment) = 5,250,000.00 as annual base rent for just the use of the dirt; which comes out to about $17.22 a ft.

Remember, You (The City of Miami) are proposing to lease it to developer at 1,400,000 annual which comes out to $4.59 a ft

“Yes Jav, BUT the Developer is paying for 20 million in improvements”.

“Yup and once you see the math, you may want to ask for just a bit more.”

OK where was I, oh yeah…So just on the dirt we are leaving 12.63 a ft on the table which looks like this and it’s sad…..

12.63 x 304,920 (7 acres in sq ft) = 3,850,417.00 total annually left on table.

Now lets multiply that by just the first term of lease which is 50 years (forget the extra 2 / 15 year renewals)

50 x 3,850,417.00 = ….My calculator just blew up…….

OK, Just called NASA and they told me that it equals………….Really?

That much is what the City is willing to leave on the Table?

It’s $192,520,850.00 

AND remember that is just the dirt at TODAY’s value and with no improvements.

Want me to do the math for “value with improvements”, You know adding that little 20 mil the developer is willing to spend?

You don’t, it will make you sick…..

VOTE NO on Grove Bay Harbour project and tell your friends/family/Abuelita’s to do the same.


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