The $1.2B deal to sell last big piece of undeveloped Miami waterfront called off
A group led by Miami developer David Martin has canceled its record-setting $1.2 billion agreement to buy the former site of the Miami Herald’s headquarters, the largest piece of undeveloped downtown waterfront land, from Malaysian casino operator Genting.
The announcement, made in a brief joint statement by Genting and Smart City Miami, the entity formed to develop the vacant 15.5-acre site, came as a deadline approached for closing of the sale. The preliminary deal was announced at the end of April.
Smart City pulled out after Genting turned down amendments to the purchase terms and an extension on the 120-day period for due diligence and closing that was sought by the developers, according to the statement released in Malaysia on Wednesday.
Without offering details, the statement suggested Smart City might still pursue a deal for the land.
“Smart City’s requests were not granted at this time, hence Smart City has elected to end its current bid. Nevertheless, Smart City remains interested in the Miami Land,” the statement said.
Genting bought the Biscayne Bay site of the former newspaper offices and printing presses for $236 million. The sale was announced in 2011 and closed in 2014, and the Herald building was subsequently demolished. The land has sat undeveloped after a failed effort by Genting and other casino companies to loosen Florida’s gambling laws.
In March, the real estate brokerage marketing the property for Genting, Avison Young, said it had fielded five bids topping $1 billion. The agreement with Smart City, an entity formed earlier this year by Martin and his father, Pedro Martin, who together in 2001 founded the prolific Miami development firm Terra Group, was touted as a sign of the continuing strength of the local real estate market. Terra has transformed iconic spots in some of Miami-Dade’s most notable neighborhoods with the help of star architects.
The joint statement asks “interested purchasers” in the BayCity property, as Genting refers to it, to contact the Miami office of Avison Young, suggesting the company is ready to entertain other offers for the land even as it presumably continues negotiations with Smart City.
“Genting has seen the value of its investment in Miami increase approximately 400% in just over a decade and firmly believes in the sustained strength and growth of the Miami market,” according to the statement. “Genting will review other opportunities to close on the BayCity sale as-is while the Company continues to enhance its remaining Miami holdings.”
Genting still owns roughly 10 acres of property to the north, including the Omni parking garage and office complex, and the adjoining Hilton Miami Downtown Hotel. Those buildings aren’t part of the property offered for sale.
Editor’s note: The family foundation of developer David Martin and his wife Christina in February announced a $100,000 donation to the Miami Herald’s Impact Journalism Fund to support coverage of climate change and resiliency in South Florida.
