Unit owners at Mutiny on the Bay – a Coconut Grove landmark with a rich history as a party hotspot during Miami’s cocaine boom – are mulling over a second buyout offer from competing developers who aim to raze the building and redevelop the site.
West Palm Beach developer Steven Figari and Slate Property Group from New York offered $160 million last month to buy the storied Grove landmark overlooking Biscayne Bay. The new bid follows on the heels of an earlier offer from DaGrosa Capital.
The Mutiny’s condominium board wrote in a March 12 letter to residents that Slate and Figari are “ready to send individual offers directly to each unit owner,” and that interested parties should reach out to the developers via email for purchase-price quotes.
The Mutiny Hotel rose to fame in the 1970s and ’80s as Hollywood A-listers and rock stars flocked to its onsite club. The hotel’s cocaine-fueled parties became the stuff of legend, embodying Miami’s decadence in the era. The property also served as a headquarters for drug kingpins, inspiring the “Babylon Club” scenes in the movie “Scarface.”
These days, the 12-story building is markedly more mellow, operating as a 170-unit condominium with a hotel program managed by Provident Resorts.
The Mutiny has emerged as a prime target for redevelopment in recent months. The location offers a rare sliver of waterfront real estate on the bay – with unobstructed views of the water.
DaGrosa Capital, a real estate group where Miami Mayor Francis Suarez is listed as a senior partner, extended a separate buyout proposal in December. Condo board president Mayra Gomez tells the Spotlight that the offer is still active.
“Nothing has been approved or signed yet. We are doing a general appraisal of the property, which should be complete within five weeks,” Gomez said.
J.C. Digon, a longtime resident who used to run the Mutiny’s onsite restaurant, says a majority of unit owners are investors who don’t live in the building year-round.
Digon has banded together with a small group of full-time owner-residents who are concerned they won’t be able to find alternate, affordable housing in Miami if they agree to sell. The group is trying to gather support to oppose the new purchase proposal.
“This is our home, basically our little slice of paradise. We work hard jobs. I can’t move to a different home in this area because I won’t be able to afford millions of dollars and the yearly property taxes,” Digon says.
A GoFundMe page set up by resident Debbie Caulley, entitled “Save the Mutiny,” is seeking to raise money for legal representation to help block buyout efforts.
Under Florida law, the buyout would require 80% approval from owners to move forward. If at least 5% of unit owners explicitly object, the deal would be stalled or thwarted for a minimum of two years.
Slate and Figari’s proposed deal is contingent on their ability to secure approval from county and municipal governments for a large-scale redevelopment.
If the deal makes it to closing, owners who live in the condo will have at least six months to stay in the building, with rent capped during that time period. Other incentives include rebates for condo association fees and special assessments.
According to Gomez, DaGrosa’s competing offer did not lay out a total purchase price that could be directly compared to Slate and Figari’s offer – as two commercial spaces on the property were not included in the DaGrosa proposal.
Neither Slate nor Figari has responded to a request for comment.
Slate Property Group has developed and acquired more than 17,000 units since it was founded by Martin Nussbaum and David Schwartz in 2013, according to the company’s website. The firm also touts $8 billion in transactions across its portfolio since inception.
Figari used to serve as managing director at Slate. He’s currently the managing partner at Shoreham Capital in West Palm Beach.
Sabrina Wilkinson, a Mutiny unit owner and real estate agent, told the Spotlight in late January that an early poll of residents indicated it was likely they could reach the 80 percent threshold needed to authorize a buyout.
The poll was taken one month after DaGrosa sent a letter outlining its plans to purchase the property. Wilkinson said at the time that DaGrosa’s offers for some owners were 40% higher than what the owners could get if they listed their units on the open market.
“There are a lot of people here who are investor-owners, and they are hungry for a sale,” Wilkinson said.
In a March 4 letter, the board indicated that Wilkinson would be representing Figari’s purchasing group. She has not reached back out for comment after the Spotlight contacted her regarding the new buyout proposal.
Redfin estimates for Mutiny units currently range in value from roughly $400,000 for a one-bedroom 650-square-foot unit to more than $2.4 million for a penthouse.
Mutiny owners who are critical of the buyout offers claim the Mutiny’s land alone calls for a steep premium. The property has the potential to be transformed into one of the most pricey condominium buildings on Bayshore Drive, with multiple multimillion-dollar apartments boasting waterfront views, they say.
Digon has not reached out to Figari and Slate for a price quote under the new buyout proposal. He says DaGrosa offered him roughly $800,000 for his unit.
Though he’s seen his property value rise since acquiring his 740-square foot unit for $201,000 in 2004, he says the profit on a sale won’t offset the new, long-term expenses that will come along with buying a nearby unit in Coconut Grove.
“The investors want to go on their merry way. They are telling everybody, ‘Sell. Sell. Sell.’ But some folks who have lived in the building for years aren’t making a ruckus. We will be quietly showing the developers we are not interested,” Digon says.
This story was originally published in the Coconut Grove Spotlight, a WLRN News partner.
