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Onyx Housing Group bought a development site in Homestead, Fla., for $4.3 million, with plans to build a $46.5 million rental property, Commercial Observer has learned.
The parcel, which spans 3.45 acres across six lots, faces Dixie Highway at 16300 SW 296th Street, and is home to a 8,686-square-foot food processing facility.
The all-cash deal remained in contract for about a year, and the sellers originally asked $4.9 million, said Current Real Estate Advisors’ Alejandro Snyder, who represented the buyers.
“There’s obviously a gap in the market between sellers’ expectations and where buyers are able to make these development deals pencil,” the broker said.
Onyx Housing Group, led by Shadi Shomar and Gonzalo De Ramon, plans to develop a 159-unit multifamily development, called Regatta Point, which will feature two four-story buildings and a surface parking lot. The site is roughly 33 miles southwest of Downtown Miami.
The sellers, Jeffrey Jay and Ana Maria Butthad, had purchased the property for $500,000 in 2001, according to property records. Lisa Gonzalez of KW Commercial, who represented the sellers, confirmed the sale.
Construction on Regatta Point is expected to start mid-2025 with completion slated for the third quarter of 2026.
“There’s a lot of noise around land development more towards the urban core, but a lot of those deals aren’t necessarily making sense today because of rising construction costs and the cost of structured parking,” said Current’s Michael Williams, who also represented the buyer. “A deal such as this, where you’re planning [a] surface parking lot, works a lot better.”
Onyx Housing Group, which is based in Fontainebleau, is under contract to buy another development site nearby. Onyx’s pipeline includes several projects in Florida, such as Naranja Grove, a 337-unit apartment complex at 24000 Southwest 127th Avenue in Princeton, Fla., and an 846-unit development on 47 acres in Fort Pierce.
Julia Echikson can be reached at jechikson@commercialobserver.com.
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