A big developer has expressed interest in Coconut Grove Bank’s headquarters property, but the bank’s CFO said it is not listed for sale.
Brian Bandell
Senior Reporter- South Florida Business Journal
While Coconut Grove Bank enjoyed improved second quarter earnings, its CFO insisted that its headquarters was not for sale to a developer, but it would entertain offers.
Several sources with knowledge of the situation told the Business Journal that at least one major condo developer has heavy interest in the bank’s headquarters property. This is coming at a time when 50 condo towers are proposed in South Florida.
Coconut Grove Bank owns the 5.2-acre site across from Biscayne Bay at 2701 S. Bayshore Drive, which is also home to its 77,386-square-foot headquarters building. The six-story office was built in 1959.
Coconut Grove Bank Executive VP, CFO and Treasurer Lynn Cambest said the property is not listed for sale, nor is it under contract to be sold.
“There has always been interest from developers in this property,” Cambest said. “If there ever would be a contract, the bank would remain on the property. We aren’t moving. This is our home.”
The bank’s board might consider staying on the site in a new building, he added.
Should Coconut Grove Bank one day decide to sell its headquarters, bank accounting rules could make the sale particularly lucrative. Fixed assets like a headquarters office depreciate in value over time. When a bank owns a property for a long time that means a property could be valued on its books at next to nothing, but, in actuality, it could be sold for millions of dollars.
Coconut Grove Bank has been in that location since it was founded in 1926. Cambest said its headquarters counts as a very small value on its balance sheet.
The Miami-Dade County Property Appraiser listed the value of Coconut Grove Bank’s headquarters property at $13.7 million, although that is considering that most of the site is a parking lot. It could be worth much more to a developer looking for a large site near the water.
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