One of South Florida’s most prolific condo-bulk buyers has done it again.
BH3 Development, which was behind bulk acquisitions at Terra Beachside in Miami Beach and Trump Hollywood, paid $23 million for 70 residential condos and 40,000 square feet of retail and office condos at 1805 Ponce De Leon Blvd. in Coral Gables.
Miami developers Sergio Pino and Juan Menendez developed the 15-story Villa Ponce, which has a total of 110 residential units, in 2008. The partners sold 40 units before the housing market crashed, and they lost the unsold condos to foreclosure. Ocean Bank took title to the units last year and sold them to BH3 on Dec. 28.
BH3, whose principals are Gregory Freedman, Charles Phelan and Daniel Lebensohn, is an opportunistic real estate firm that buys real estate in South Florida and New York. Its source of capital is private investors and New York institutional partners, Lebensohn said.
BH3 plans to improve the units, some of which are now rented, and upgrade the building’s amenities and common areas before marketing the condos for sale.
"We will relaunch the project with the purpose of selling the residential condominiums as well as the commercial condos," he said.
In a "global cost basis" per square foot covering the residential and commercial space, BH3 paid about $200 per square foot. The investor hopes to sell the residential condos for at least $350 per square foot, depending on the location of the unit. The asking price for the units would range from the mid-$200,000s to $1 million.
The commercial space could fetch at least $450 square foot, Lebensohn said.