Arbor Grove Development Assumes Ownership of 5-Story Coconut Grove Project

Coconut Grove, Arbor Grove Development LLC, managed by the Pembroke Pines-based attorneys Issac Kodsi and Steven Amster, has taken ownership of a property located at 3034 Oak Ave. This acquisition involved the transfer of both property ownership and a substantial $21 million loan.

What’s been going on: The property was previously owned by an entity registered to Miami-based developer Nicolas Hamann, as reported by the South Florida Business Journal. The loan on the property, originally held by Trez Capital, has now been transferred to Fort Lauderdale-based Oasis Investment Trust.

This transaction took the form of a deed-in-lieu-of-foreclosure transfer. It involved the original lender releasing Nicolas Hamann, operating under the name 3034 Oak Park LLC, from personal guarantees on the loan. Arbor Grove Development has undertaken the responsibility of repaying the loan, as confirmed by the SFBJ.

The building in contention: The property in question, known as Arbor Coconut Grove, was a five-story development that initially resulted from a joint venture between Nicolas Hamann's Urban Atlantic Group and Oak Ventures, managed by Jeremy Waks. The developers acquired the 36,000 square foot lot for $5.3 million in 2015, according to property records.

Other issues that came up: Originally scheduled for delivery in the fall of 2018, with closings set to commence in early 2019, the project faced a series of challenges. Trez Capital filed an $18 million foreclosure suit against 3034 Oak Park LLC and Nicolas Hamann in August 2022. Among other things, the suit alleged that the borrower had failed to repay a $20.7 million construction loan by the maturity date and had not complied with the terms of a forbearance deal. However, the suit was subsequently dismissed in August.

The former owner’s testimony: Nicolas Hamann revealed to the SFBJ last year that the development had been fully sold, and construction had reached approximately 90% completion. Despite this progress, the developers were unable to close on the sale of individual condo units, which required a 40% down payment, due to the project's unfinished status.

Hamann had been in discussions with a new lender to refinance the property when the foreclosure suit was filed, a timing challenge he described as unfortunate. The development's units included two-bedroom, 1,474 square foot condos and 13 two-story townhomes, with Douglas Elliman serving as the exclusive broker. Prices started at $799,000 and averaged $900,000 in 2017.