Notorious Brownfield Site To Be Replaced By Mixed-Use Development

Apr 01, 2018 No Comments by

Reese Stigliano, President of Stigliano Commercial Real Estate is pleased to announce the sale of the former Cuyahoga Wrecking site, a federally designated Brownfield, located on State Road 9 in the City of Opa Locka.

Declared a public nuisance in 1986, the site was the dumping grounds of the Cuyahoga Company, one of the most active demolition contractors in South Florida.

Stigliano represented the sellers, Miller Legg Capital Holdings, LLC.  The Buyer, Castle Opa, LLC, purchased the 7.6-acre parcel for $475,000.

The Buyer is planning a mixed-use development to include a six-story, 250-unit apartment building, retail, and a possible hotel.

To consummate the sale, there were some enormous obstacles to overcome, said Stigliano. The property was under contract for almost two years. During that time, Reese, in cooperation with co-broker Pete Messina of CBRE, had to deal with outstanding code enforcement liens of over $1.8 million from City of Opa Locka, which was under investigation by the FBI for corruption charges and a 2015 Miami-Dade environmental cleanup lawsuit that carried a $25,000-per-day penalty.

Fortunately, the owners had the patience to allow Stigliano and the Buyer the time to unravel the issues encompassing the property. Prior to the closing, Reese was able to assist the Buyer in negotiating a Lien Settlement Agreement with the City of Opa Locka, reducing the $1.8 million municipal liens to less than $200,000. Stigliano was also instrumental in negotiating a Consent Agreement with the Miami-Dade County Department of Regulatory and Economic Resources (DERM) which laid out a remediation plan to clean up the site and reduced the $25,000 per day penalty from over $18 million to $72,000.

 

“Even though the dollar size of the transaction was relatively low, the complexity and variety of issues involved with the property made this one of the most challenging transactions in my 35-year career in the commercial real estate business,” said Reese.

Reese Stigliano began his real estate career in the office leasing arena, where he represented some of the major landlords in South Florida. One of his largest transactions was a 100,000 square foot office corporate headquarters lease with Alamo Rent a Car in Downtown Fort Lauderdale’s 110 Tower, which remains one of the largest office leases ever completed in Broward County.

Recently, Mr. Stigliano has been focused on land sales and redevelopment projects. His expertise in large and complex transactions along with his experience in the land development process, land use and zoning regulations has been the foundation of many successful transactions. These include one of the largest industrial land sales in Broward County, a forty-acre, $20 million sale in Davie, FL to international developer IDI.

 

“In today’s high-tech market, local knowledge, tenacity and the ability to connect to people are still as important as they were when I started in this business thirty years ago,” commented Reese.   “I’m really excited to enter this stage of my career and continue to help clients with my personal hands-on approach with each and every transaction.”

 

 

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Industry News, Miami-Dade County Retail, Retail
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