If Edgardo DeFortuna and Manuel Grosskopf can get a demolition permit for the hulking, half-built structure on their newly acquired Solis site, the city of Sunny Isles Beach has agreed to give them a pretty serious perk. If DeFortuna and Grosskopf demolish the Solis building, they’ll receive a $250,000 credit, which will go to the cost of the Transfer of Development Rights on the property.
Last year, DeFortuna’s Fortune International purchased the property (through their subsidiary, Sunny Isles Property Venture, LLC) for just under $41 million. Beachfront property in Sunny Isles Beach is prime real estate, as you can tell by a price tag of over $40 million per acre.
Ocean Palms Constrcution
DeFortuna and Grosskopf (of Chateau Group) have joined forces on this Sunny Isles beachfront venture, adding a neighboring Ocean Palms site, for an additional $40 million. The developers obviously see great value in the area, along with very serious growth potential, or they would not be pouring millions of dollars into developing in the area.
Residents of Sunny Isles Beach should be able to breathe a sigh of relief, as Fortune International and Chateau Group join together to demolish a long-time eyesore. Construction on the Solis building began back in 2007. It was intended to be a 53-story residential building. However, when the housing market collapsed in 2008, construction was halted with the building’s skeleton standing at only 10 stories.
The Solis Site
For the past six years, the Solis site has been a point of contention. Developer Gil Dezer applied for extensions to his group’s building permit and hoped to begin construction again – after over half-a-decade – by the end of the fiscal year in 2013. However, that plan fell through, and DeFortuna was the lucky winner to purchase the property.
If DeFortuna and Grosskopf can keep their momentum going, getting a demolition permit by May 1st, they’ll begin demolition by the first of June. This progress has to come as a serious relief to the residents of Sunny Isles Beach. After all, the desolate skeleton of the Solis building isn’t just an eyesore; it is a reminder of economic instability.
It was only six years ago that the housing market collapsed. Economic instability and low confidence in the market created a lot of unemployment, lost savings, and general unease. As long as that building stands, the residents of Sunny Isles will have a property-devaluing eyesore that reminds them that even real estate is not a guaranteed investment.
The sooner the Solis building can be demolished and replaced by successful constructions, the better off Sunny Isles Beach will be. That’s why the city is willing to credit these developers with a quarter of a million dollars to get the job on its way and over with.
With incentive like this, DeFortuna and Grosskopf would have to be fools to remain stagnant on this project, and these men are definitely not fools. They’ve made wise and timely choices in their real estate ventures, and this; so far, $81 million project should be no exception.
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