The Canero Group has acquired all the units in a 60-year-old Coconut Grove condo building that was subject to demolition by the City of Miami after dodging building recertification for two years.
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An affiliate of Jose Canero’s The Canero Group purchased all 25 units at the Chateau Grove for $17.3M with a new debt of $12.5M from ROK Lending, according to property records provided by Vizzda. The property was built in 1963.
The condo’s recertification by the city was due on April 30, 2023, but as of May 5 of this year, no documents had been submitted, according to public records.
The delay prompted the City of Miami’s Unsafe Structures Board to schedule a hearing for May 16 regarding the condo association’s failure to complete its 40- to 50-year recertification.
The violation made the building subject to demolition, according to the City of Miami's website.
Canero and his partners on the project, Mario Bustamante and Juan Puig, attended the hearing and were granted an extra six months to obtain the recertification, Raquel Rivas, The Canero Group real estate agent for the buyout deal, told Bisnow.
The two-story complex at 3265 Virginia St. totals 20K SF and includes 32 parking spaces, a pool and a mix of one- and two-bedroom units.
Canero — who had been eyeing the building for more than a year — and his partners are starting small. After renting out the units, the partners will explore their options, Rivas said.
There could be room for a potential redevelopment further down the line, The Real Deal reported.
The Canero Group’s Michael “Axel” Neree, along with Maria Patty Bolaños and Rivas, led the transaction, acquiring all 25 units over six months.
The swift buyout stands out amid a wave of developer hesitation in South Florida as unclear legal standards and owner holdouts have made condo terminations legally risky.
Against the backdrop of a condo market “doom loop” driven by recertification mandates and reserve funding requirements, many commercial real estate experts had hoped the recent condo bill, HB 913, would clarify the termination process.
But the bill passed through the House and Senate without addressing those concerns. It now awaits Gov. Ron DeSantis’ signature, leaving aging condos with fewer options as costs and reserve obligations mount.
CORRECTION, MAY 22, 10:20 A.M. ET: The headline and story have been updated to clarify the nature of the possible forced demolition.
