Miami Developer Scores 160% Profit Flipping Grove Building
Jose Canero's Canero Group sold the 25-unit Chateau Grove complex for $45.5 million after purchasing it for $17.3 million just one year ago. El-Ad National Properties acquired the Coconut Grove property for potential redevelopment.
A Miami-based developer has achieved a remarkable 160 percent return on investment by flipping a Coconut Grove condominium building in just one year. Jose Canero's Canero Group sold the 25-unit Chateau Grove complex at 3265 Virginia Street to El-Ad National Properties for $45.5 million, generating $28.2 million in profit from the original $17.3 million purchase price.
The transaction represents a significant win for Canero, who operated the 20,500-square-foot building as apartment rentals during his brief ownership period. Current rental listings show two-bedroom units commanding $3,500 monthly, according to property data.
Boca Raton-based El-Ad National Properties, led by CEO Matthew Jeffries, made its first Coconut Grove acquisition with this purchase. The company plans to redevelop the 0.9-acre site, though specific development plans remain undetermined. The property's T4-L zoning typically permits three-story construction, but Florida's Live Local Act could enable higher-density development.
The sale reflects the intense investor interest in Coconut Grove's residential market. Berkadia's Omar Morales represented Canero in the transaction, facilitating what amounts to a 2.6-times return on the original investment.
Canero continues expanding his Coconut Grove portfolio despite the Chateau Grove sale. In March, his firm partnered with 8K Capital to acquire the majority of units at Virginia Pointe Condominium, located directly adjacent to Chateau Grove at 3245 Virginia Street. The joint venture paid nearly $28 million for the bulk purchase of the 66-unit complex, converting it to rental operations without immediate redevelopment plans.
The Grove's condo conversion trend extends beyond Canero's activities. BH Group and Mast Capital completed a similar bulk acquisition in March, paying approximately $28 million total to gain complete ownership of the 39-unit Bayshore Park building at 2545 South Bayshore Drive. The partnership paid nearly $7 million for the final seven units to complete their assemblage.
Coconut Grove has experienced substantial luxury development activity over recent years. Terra Group delivered both Mr. C Residences and Arbor Coconut Grove, while also completing Grove at Grand Bay and collaborating with Related Group on the Park Grove towers during the past decade.
El-Ad brings significant development experience to its Grove entry. The company recently reported over $60 million in unit sales during the winter-spring season at its Alina Residences Boca Raton project, including three penthouse transactions. The nine-story, three-building development reached completion in phases, with the final phase receiving temporary occupancy certification in early 2025. El-Ad also has planned condominium projects in North Bay Village.
