Alta Developers is launching sales of a short-term rental-friendly condo project in Coral Gables, joining a growing pipeline of such developments planned in Miami-Dade County, The Real Deal has learned.
The Miami-based firm, led by CEO Raimundo Onetto, originally sought to develop an apartment building at 4011 Salzedo Avenue. About six months to a year ago, Alta changed course.
“The multifamily market is pretty tough today. With interest rates and costs, it’s very difficult to launch a multifamily project,” Onetto said. “The condo projects keep selling and selling and selling.”
Other short-term rental condo projects planned in South Florida include 600 Miami Worldcenter, Natiivo Fort Lauderdale and Gale Hotel & Residences Miami.
Alta’s Cassia, a planned 12-story, 174-unit condo, will have one- to three-bedroom units between 662 square feet and 1,439 square feet. Prices will start in the $700,000s and go up to about $1.8 million, Onetto said. The condos will be delivered finished and furnished by RH, the home furnishings firm previously called Restoration Hardware.
Alta tapped Cervera Real Estate to lead sales and marketing of Cassia. Buyers will be able to rent their units through the building’s rental program without restrictions, though the developer is considering requiring a minimum two- or three-night stay.
Onetto said he expects foreign investors to purchase units, use them when they are in town and rent them out for the rest of the year. He is also targeting families whose children are University of Miami students, and nurses and doctors working at nearby hospitals.
Jesse Ottley, president of development sales at Cervera, said he continues to see strong demand for short-term rental-friendly condo projects.
“This type of product is the answer to the question of flexibility of use,” he said. “People can use it when they’re here, and when they’re not here they can put it into a management program that allows them cash flow. … This is a great way to start your real estate portfolio.”
A sales center is expected to open next month at 4201 South LeJeune Road in Coral Gables.
Alta could break ground by the end of the year. The developer will be working on selling about 40 percent to 45 percent of the units — roughly 70 units — to lock in construction financing. The loan amount could be about $60 million, Onetto said. Construction will take about 18 to 20 months.
Amenities will include a paseo that features a nearly $1 million tree sculpture, a cafe, gym, pools, a landscaped garden on the fifth floor and about 15,000 square feet of ground-floor retail space.
Alta renovated the adjacent office building fronting Bird Road and plans to sell it after leasing it.
The developer paid $17.5 million for the entire 1.5-acre assemblage in late 2020. Baptist Health South Florida sold the site. Baptist and Belmont Village Senior Living developed Belmont Village Senior Living Coral Gables next door at 4111 Salzedo Street.
The properties are north of the Shops at Merrick Park and near The Collection, a luxury and exotic car dealership co-owned by developer Ugo Colombo.
Colombo and Shoma Group co-founder Masoud Shojaee originally planned to develop the Baptist and Alta properties. The partnership soured, and amid litigation between the two, they sold the site to Baptist for $37 million in 2019.
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