$29,000,000 LOT ON EXCLUSIVE
SUNSET ISLAND #2 UNDER CONTRACT

2500 Bay Avenue, Miami Beach, FL

Rumor has it, from people familiar with the deal, that this 84,000+ sf lot is under contract and is awaiting closing.

I’ve done a good amount of research on this lot, and in the last four years, there has been considerable “hoo-hah” (isn’t that a “Palin-ism?”) surrounding this property.

2500 Bay Avenue, Miami Beach – The Basics

• Five lots totaling 84,000 sf and approximately 570 linear feet of waterfront.
• Located at the tip of Sunset Island #2, the lots are considered one of the most important pieces of Miami real estate.

2500 Bay Avenue, Miami Beach – The History

• Sept. 1976 – Property was purchased for $800,000.  Owner Gigi Carrier-Cowell.
• July 2004 – Sold to Paul Jacobson for $15.2M.  From what I’ve been told, there was some type of broker drama in between the sale from Carrier-Cowell to Jacobson, but only the brokers involved know those interesting little details (I know, but I ain’t sayin’!).
• August 2004 – Jacobson lists the property for $28M.
• Feb. 2005 – Jacobson receives an approval from the city of Miami Beach for a lot split.  According to the planning department, the lots are to be split in two: one at 39,472 sf and the other at 44,547. During the lot split process, a piece of land was sold to one of the neighbors.  According to the docs from the city, the planning board severely reduced the size of the properties that could be built on the two lots.
• Feb. 2005 – The day after the approved lot split, Jacobson reduces the entire parcel to $27M and lists each lot separately for $14.5M (larger lot) and $12.5M (smaller one).
• July 5, 2006 – Property goes pending in the MLS.
• July 25, 2006 – Some drama ensues, and the property becomes available for sale in the MLS.
• August 14, 2006 – Property closes.  Purchase price reported to be $16,212,500.  Real estate community speculates that the actual purchase price is somewhere in the low $20M range.  Buyer unknown, but a local developer is rumored to be the owner.
• May 2008 – Property becomes available for sale for $29M.  People familiar with the deal say that the contract is hard and pending closing.

In the event this is true, and the purchase price is accurately reported, this could be the highest price ever recorded for any piece of residential real estate in Miami-Dade and Broward counties.