Mast Capital recently unveiled plans for a 2.6 million-square-foot development in Miami’s South Brickell neighborhood in a prime location. The company paid a whopping $103 million for the 2.8-acre parcel, a deal that represented one of the largest land sales closed in the region in 2021. The transaction also showed how land off the waterfront is trading at a premium on the heels of the ongoing wealth and business migration to the South, but it also reflects the unprecedented demand for Miami luxury projects, particularly for multifamily and condo development.
Mast Capital’s vision for the site includes a master-planned development that will encompass a condominium tower with 400 residences—targeting a sellout near $1 billion—and two other high-rises totaling 850 luxury apartment rentals, built in partnership with Rockpoint Group.
The site, which sat dormant for over 15 years after two unsuccessful attempts to develop it, is one of the last remaining raw parcels of land available to build a project of this scale in the area. “Where some may see a complicated parcel where past developments have failed, we see an opportunity to build something truly transformational,” Camilo Miguel Jr., founder & CEO of Mast Capital, told Multi-Housing News.
In the interview below, Miguel reveals what his company has in mind for the sought-after development site at 1420 S. Miami Ave., but also shares details about his other Miami luxury projects currently in the works.
Give us some details about the planned master project and how it will blend in with the surroundings.
Miguel: We are planning to develop an 80-story condo tower and two multifamily towers that are 50 and 60 stories high, respectively, which we hope to be iconic and differentiated in the market.
While it’s difficult to seamlessly blend in an 80-story tower into any location, the large area of the site allows us to have a lot of freedom in developing an integrated project that enriches the neighborhood.
What features of the project make it stand out?
Miguel: The master-planned development along South Miami Avenue will be transformative for Brickell, with a total of 1,250 residential units, including a branded condominium tower targeting a sellout of approximately $1 billion. The development will add 400 condominiums, 850 rentals, 1,650 parking spaces, as well as ground-floor retail on South Miami Avenue.
The site’s location will stand out as this area generally has lower density and substantially less traffic congestion than other parts of Brickell. On the condominium development, our offering is being designed with end-users in mind, creating larger units that are 500 square feet larger, on average, than the condos that were built in Brickell in the last market cycle.
Brickell has evolved as a market to a location in Miami where people want to live in as their primary residence, with previous condo developments often targeting buyers who intend to rent out the units or use them as secondary homes. We are also excited to partner with a luxury lifestyle brand that will provide high-quality, resort-style amenities, including food and beverage services, exclusively for resident use.
On the multifamily front, we will also deliver for a gap in the market as there are only two other high-rise apartment rental buildings in Brickell, while the market is still primarily comprised of renters. Rent growth for recent vintage Brickell condos has increased over 30 percent in the last year and our multifamily towers will cater to that demand by offering the convenience and benefits of renting in a professionally managed apartment community.
Who else is involved in this large-scale development?
Miguel: Mast Capital partnered with private equity real estate firm Rockpoint for the multifamily component, with financing provided by MSD and CanAm on the condominium component.
When do you expect the first residents to be able to move in?
Miguel: We anticipate commencing groundbreaking towards year-end, with delivery slated for the second quarter of 2025. We will be releasing details regarding design, development timeline and sales later this year as development plans advance.
Are there any other residential Miami luxury projects you are currently working on? What other development do you have in mind this year?
Miguel: Mast Capital has about $2 billion in projects in the pipeline with three projects breaking ground in Miami within the next year. We recently received design approval on plans to develop two luxury projects in Miami Beach: the high-profile 5333 Collins Avenue, an oceanfront condominium tower developed in partnership with Starwood Capital, and 4000 Alton Road, a luxury apartment development with 176 units in partnership with Rockpoint.
The firm just broke ground on the second phase of Waterline Miami River, which will bring the full development to a combined 700 apartment units. The second phase will consist of 346 rental units on a 6.3-acre development site, with over 1,000 feet of unobstructed water frontage along the Miami River.
We also have a project breaking ground this year in Tampa’s Wesley Chapel community, a development that will transform 16 acres in Pasco County into a 248-unit luxury apartment community.
What is fueling the unprecedented demand for multifamily and condo development in Miami? How much has the pandemic impacted the market?
Miguel: The pandemic has stirred the movement of companies relocating or expanding their footprint across Florida. This, combined with the favorable tax environment and tropical lifestyle the region has to offer, continue to fuel population growth and create a set of economic drivers favorable for real estate investment in the region.
Please share your predictions for the Miami luxury sector in the year ahead.
Miguel: Miami’s real estate market is booming right now and we don’t foresee investor demand slowing down in the near term. From its lifestyle to its arts and culture and warm weather, the metro has risen as one of the top cities to work, live and invest in the U.S. today. The luxury residential market will remain strong as more companies and people continue to move here as part of the business and wealth migration trend.
Overall, the outlook is very positive for Miami’s condo and multifamily markets given the strong economic fundamentals the region is experiencing. We don’t foresee this unprecedented growth to dissipate any time soon and fully expect for this expansion to have persistence as Miami and Florida in general become one of the most attractive places to move to, not only from other high-tax states, but from other countries as well.