CG Summer Investments, an affiliate of the Miami-based developer, immediately obtained a $23 million mortgage on the property from BI Downtown, an affiliate of Miami-based lender BridgeInvest. It\’s likely the amount of that loan was less than what was paid for the seven-story apartment building at 2678 Tigertail Ave.
\”Our company has deep roots in the Coconut Grove community as most of us live and work here,\” BridgeInvest Managing Partner Alex Horn said in a news release. \”We are excited to work with Terra Group, a high-quality property owner.\”
Instead of paying an open amount of consideration for the project, Terra Group\’s CG Summer Investments elected to become the managing member of Summer Hill Apartments, the company that previously owned the property. Incorporated in 1968, Summer Hill Apartments was previously managed by Martin Lieberman and Lorne Lieberman. When it transferred the deeds between the entities, Terra Group paid only 60 cents in property sales taxes instead of what would have likely been more than $140,000, based on the mortgage amount. Florida law allows related entities to avoid paying market value when transferring real estate between them.
Built in 1969, the apartment building was recently valued at $7.7 million by the county appraiser. It sits on a 1.5-acre site.
\”Part of Terra\’s mission is to find strategically located income-producing properties to reposition, hold and manage over the long term,\” Terra Group President David Martin said in a news release. \” We believe the future of the Coconut Grove community is bright given its walkability, schools, low-scale village character, parks and retail opportunities.\”
Terra Group is developing a mixed-use project on some nearby parcels.