Condo dissolved to make way for student housing
Daily Business Review
10 January 2017
Guillermo Mancebo helped terminate a 1983-built condominium to make
room for a new student housing complex near Florida International
University in Sweetwater.
Mancebo, a Miami attorney with Mancebo Law Group, represented the
condo's association and its 33 unit owners in the $16.6 million deal.
The Grove Estates Condominium north of campus at 10940 SW Seventh St.
was composed of 33 townhouse-style units. While some were
owner-occupied, others were rented to tenants.
declaration required 100% approval by its owners
Mancebo was approached by a developer who wanted to buy the land,
terminate the condo and replace the two-story buildings with a modern
20-story residential tower. Grove Estates' condo declaration required
100 percent approval by its owners for a termination to happen.
"It was part education, part psychological and part drama," Mancebo
said. "We had to wear many hats with 33 different owners in order to
get this deal done."
Mancebo said several owners were unfamiliar with the arcane process of
terminating a condo so many hours were spent explaining the deal
structure. The process began in April and was marked with multiple
meetings with unit owners.
Condo buyouts often lead to lawsuits between sellers and buyers, but
Mancebo was able to negotiate a deal that kept the transaction out of
To ensure a smooth transition of ownership, Mancebo negotiated a
conditional plan of termination between his clients and the developer,
which meant the condo would only be deemed terminated if previously
agreed conditions were met. The individual owners retained title to
their units after the termination plan was recorded. Once the developer
secured the financing and approval needed to move the project forward,
the condo was terminated.
each owner walked away with an average of $503,000
When the deal closed Dec. 20, each owner walked away with an average of
$503,000. The property was purchased by Collegiate Suites Miami LLC, a
company linked to Global City Investments in Miami. The developer hopes
to secure adjacent property and ultimately build 1,000 units of student
Mancebo said the average price of each property last April was $130,000, or nearly a quarter of the buyout price.