With the intent of performing various renovations, Nadim Achi and Miami-based Fort Capital Management purchased 46 units out of a total 69 in the Capri South Beach condo building at the end of May. They have a five-year plan to sell the units with an eye toward buyers in New York and Brazil. Fort Capital's Achi is part of a new trend of bulk buyers that are now purchasing Miami Beach real estate but taking a more patient approach instead of flipping quickly like some investors do.
Peter Zalewski, founder of Condo Vultures, comments that: "It's kind of the trend now. There's a commitment of capital by the bulk buyer, it's different than what you had seen previously, where you buy and then try to resell. Now they buy and wait, and they're going to be more stringent on the prices they accept."
Fort Capital purchased the 46 South Beach condos at the Capri located on Biscayne Bay with the approach that instead of selling at a lower price, as it is the case with most bulk deals, they intend to make improvements. The original developer, Mark Siffin of Maefield, built the luxury Miami Beach real estate property in 2008 but had difficulties due to the market downturn.
Achi said: "What we're looking at is what do people with money, from New York or abroad, want to buy when they're in Miami. This is for a New York crowd and for the foreigners who come to Miami." For many Brazilian buyers, even luxury Miami Beach real estate properties can be more affordable than cities like Sao Paolo, where prices as high as $1,500 per square foot for high-end real estate can be typical, he said.
Miami Beach architect Sam Robin was hired by Fort Capital to oversee the renovations, which include a complete overhaul of the building's lobby, along with landscaping and other changes. Achi said, "The work [Robin] has done is tremendous. For us, if adding that type of work means an additional $10 per square foot investment, we could easily get $30 or $40 per square foot for it. That's how we're looking at it."
For nearly three years, Achi has been scouting the area for deals. The firm was nearly handed the deed on the Caribbean until another buyer moved in, but eventually found Capri.
The property, which is located at 1445 16th Street, includes three separate complexes, with another unique touch: underground parking, unlike the high-rises across Miami which have a block of covered parking before the residential levels begin. The building also includes a number of so-called "dockominiums," individually sold boat slips, though they are being sold only to owners in the building for now. Capri is also notable for having used the French company that dug the Channel between England and France to create the building's underground garage, a rarity in South Florida.
Contributed by MLR Realty
