15 Mar SEDANO’S SUPERMARKETS CEO SELLS 86-ACRE HOME SITE IN FLORIDA CITY
Commercial Real Estate
Sedano’s founding family sells development site for $34M
The family that owns the majority of Sedano’s Supermarkets sold an 86-acre home development site in Florida City for $33.73 million.
GREC Homes IX LLC and GREC Homes VIII LLC, managed by Agustin Herran of the Herran family that heads the supermarket company, sold the vacant property at 1100 W. Palm Drive, including the northeast corner of Palm Drive (Southwest 344th Street) and Tower Road (Southwest 192nd Avenue). The buyer was Brickless Developer Group Corp., managed by Nelson A. Delgado in Homestead.
The deal included $32.63 million in seller financing. The mortgage states that the minimum release price for each home — the amount required to remove the loan from the property — is $23,000 for the villas, $35,000 for the townhomes and $43,000 for the single-family homes.
That’s well below the average sales prices for homes and townhomes in Miami-Dade, which reflects the low property values in Florida City.
The site was approved over a decade ago for the Keys Edge development. A community development district (CDD) was established in 2007 to utilize property taxes from development in the area to fund infrastructure improvements for the project by issuing a bond. No bond has been issued because development has yet to take place.
According to the Keys Edge CDD website, the community was approved for 624 villas, 174 townhomes and 389 single-family homes.
Under an agreement recorded between the buyer and seller, if Brickless Developer Group receives any of the up to $7.63 million in infrastructure funding from the CDD, it must pay 70 percent of those funds to GREC Homes as part of the purchase price.
In addition, for the first 40 percent of homes sold in Keys Edge, if they sell for above the average price anticipated in the mortgage release agreement, GREC Homes would receive 35 percent of the overage.