Two developers Masoud Shojaee and Ugo Colombo bought a property in Coral Gables called the Collection Residences in 2013. Their idea was to create a joint venture that would be part condominium and part commercial property. The project was to be a major undertaking and would include significant money from both sides.
A total of 128 condos were to be built and an unspecified amount of retail space would be available. The total size of the property was 2.8 acres. You can find the property at 250 Bird Road, a relatively high demand area.
Shojaee and Colombo bought the property for 27 million dollars. A hefty sum.
After the property was purchased the two began to stage the development. They built a sales office, drew up architecture plans, and took a few other steps to go further than just purchasing the property. Those steps that they took cost the companies millions of dollars.
The initial announcement about the cancellation of the project was announced by Shojaee. He stated that at the time, they were only going to stop the joint venture. No official news was released about the direction of the property in the future at that time.
Shoma Shojaee’s company decided in 2016 that it was going to file suit against Gables Investment Holdings LLC, Colombo’s company. Included in the suit was Colombo himself and his car dealership, The Collection. The suit was brought because Shojaee believes that Colombo and his companies did not follow through on the contract that they had agreed to.
The lawsuit was to claim up to 5 million dollars from the start of the project, such as the plans that were drawn up and other operational costs. However, the lawsuit has been caught up in a number of controversies, such as Colombo claiming the sale of the property to another party would cover the losses.
Shojaee and his attorney claim that the sale would not cover the losses and that it would only cover the cost of purchasing the property in the first place.
In July of 2018, Colombo was dismissed from the case so that only his companies remained as part of the civil suit. The attorneys for the Shojaee are adminant that the case should not be dropped completely and that Colombo intentionally sabotaged the project that they had started together.
A contract has been created for the sale of property to a new owner. The Baptist Health system has made an agreement to purchase the property from Colombo and Shojaee. Their contract states that they will pay 41.5 million dollars. 14.5 million dollars more than the original purchase price.
That would leave both companies with money to cover their original purchase and any costs they may have endured. That being said, the court case has still not been resolved. Colombo is stating that the case should be dropped while Shojaee is adamant that they want the case to proceed. Considering the purchase by Baptist Health it is immanent that this matter will be settled in an amicable way to all parties involved.
Baptist Health has a number of facilities throughout the Florida area hosting numerous medical purposes. The number of Baptist Health locations in the South Florida area has been growing. A recent Baptist Health expansion included a large outpatient facility in the Florida area. Baptist Health has been expanding to create new practices, such as a sports medicine practice.
A major merger with Bethesda Health also showed the power behind the South Florida based healthcare system. Bethesda Health has thousands of employees in a variety of specialties and the purchase allowed them to expand both their staff and facilities.
Due to the other two companies failing to build on the property with combined assets, there have been people wondering if Baptist Health will build on the property. However, with the constant expansion off their healthcare system, we have every reason to believe that there will be something constructed there.
There is a question that is still in everyone’s mind for sure though. What exactly will Baptist Health put at 250 Bird Road in Coral Gables? There has yet to have been a formal announcement of what will be built on the property. With the diverse nature of the healthcare system, any number of facilities could be built on the property.
The property could also be used to build offices to support the various operations of Baptist Health. Anything at this point is speculation.
A whole story has grown about the 250 Bird Road property in Coral Gables. And this is just after Shojaee and Colombo bought the property. The quick contract to purchase the property by Baptist Health is a good example of the popularity of properties in the area. South Florida is open to a lot of purchase and development, an area teaming with opportunity.
A further example of the opportunity in the South Florida real estate market is the buy and sell price of the property. In 2014 the property was worth 27 million dollars and four years later, the property is worth 41.5 million dollars. That kind of increase in value is typical in the area. Especially in Coral Gables.