Crescent Heights Pays $60M for Waterfront Residential Tower

MIAMI-Crescent Heights has purchased Island Club, a 300-unit luxury waterfront residential tower in the city, for $59.5 million and plans to convert it into condominiums. The sale price equals approximately $198,333 per unit.Island Club is a 22-story trophy apartment tower located at 770 Claughton Island on Brickell Key, near Miami’s central business district. According to Jay Massirman, executive vice president of CB Richard Ellis, the property is ideal for conversion to condos–a South Florida trend in which the new owners plan to partake. “They are one of the most prolific condo converters in the country,” he adds.It was a good time to sell the property, given the current condo market, Massirman says. The seller had bought out its partner in the property a couple of years ago, Massirman says. Recently, “They got some unsolicited offers,” Massirman says. At that point, he says, “They went directly to the market.” The property was on the market for about six months, he says. “And we were able to achieve significantly greater returns” than if the fund held onto the property for five to seven years as a rental community, where owners can expect a 3% annual rent growth, if they’re lucky, he says.”Thirty days before closing, residents were calling us to find out how they could buy a unit,” Massirman said in a statement. “The direct frontage on Biscayne Bay, great views, ambiance of exclusive island living and affluent resident base make the Island Club an ideal opportunity for immediate condominium conversion.”The buyers “probably are considering some” changes or renovations to the property, but Massirman did not have details at the time of the sale.Amenities include a monitored island entrance, enclosed parking, a 24-hour controlled-access entry system, a bayfront fitness center, an island jogging path, a conference room/business center and an on-site convenience store.Massirman, Charles Crapse and Gerard Yetming of CB Richard Ellis were the exclusive advisers to Lasalle Investment Management, the representative for the seller, which was a West Coast-based pension fund.Crescent Heights, based in Miami, is a national luxury high-rise condominium developer, which developed the first residential developments in Miami’s South Beach. Its other projects include Flagler Pointe in West Palm Beach, FL.