- Flow, Adam Neumann’s real estate firm, won a Miami-Dade court auction for a 16-acre site at 8500 Biscayne Boulevard with a $70.5M bid, narrowly outbidding Melo Group’s $70.1M offer.
- The site, formerly the Little Farm trailer park, is zoned for a mixed-use project of up to 3 MSF and 2.4K residential units.
- The property had been in court receivership due to allegations of EB-5 visa fraud tied to the previous ownership group, with sale proceeds earmarked to help recover investor losses.
On Tuesday, a Miami-Dade Circuit Court judge approved Flow’s $70.5M winning bid for the 16-acre El Portal property, beating out local development giant Melo Group by just $400K, according to The Real Deal.
Going Once, Going Twice…
Unicapital Asset Management Group, another bidder led by Miami insurance mogul Ivan Herrera, exited the auction early, unwilling to engage in a price war.
Flow’s bid was facilitated by Avison Young, whose team, led by Michael Fay, managed the auction on behalf of the receiver, Michael Goldberg.
Goldberg was tasked with selling the site to help recover losses incurred by 100 foreign investors who were allegedly defrauded out of over $50M by the property’s previous ownership group.
Project Details
The property, located at 8500 Biscayne Boulevard, was previously home to the Little Farm trailer park, which has remained vacant since 2016. It fell into court receivership following a 2020 lawsuit accusing the previous owner, Fu Jing “Leo” Wu, of misappropriating funds for redeveloping the site.
The lawsuit alleged that Wu’s entities defrauded foreign investors participating in the EB-5 visa program, which grants US green cards in exchange for investments in development projects.
Wu, through his attorney, denied any wrongdoing but agreed to a 2023 settlement that allowed for the sale of the property. Proceeds are expected to fund partial restitution to defrauded investors.
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Big Plans
The acquisition highlights Adam Neumann’s continued push into large-scale real estate development, particularly in high-growth markets like Miami.
While Flow has not disclosed specific plans for the El Portal site, the property’s zoning allows for up to 150 apartments per acre, equating to roughly 2.4K units, and up to 3 MSF of mixed-use development.
This aligns with Neumann’s broader focus on multifamily projects through Flow, which has positioned itself as a major player in real estate since its $350M funding round led by Andreessen Horowitz in 2022.
What’s Next
As Flow progresses with the El Portal project, it remains to be seen whether Neumann will pursue rental housing, luxury units, or some combo to capitalize on Miami’s diverse real estate market.
Meanwhile, the legal fallout surrounding the site’s prior ownership underscores the risks of financing developments through programs like EB-5.
Flow’s next steps will likely define its role in shaping the future of the Biscayne Boulevard corridor, a key area of Miami undergoing rapid transformation.
