What’s Going On at the South Bay Club

South Bay Club is currently navigating several important issues at the same time.

Here is a plain‑language overview of what they are and why they matter.

Two big Things Are Happening at the Same Time

1) Required structural restoration and life‑safety work

South Bay Club must complete structural restoration and emergency life‑safety upgrades to keep the building safe and compliant with the law. This work is required, not optional.

2) Interest from potential buyers and redevelopment discussions

At the same time, at least one third‑party buyer is approaching individual owners with conditional purchase offers as part of a coordinated effort to assemble enough agreements to pursue condominium termination and redevelopment.

Required Structural and Life‑Safety Work

Like many older condominium buildings in Florida, South Bay Club is required to complete structural restoration, emergency life‑safety upgrades, and electrical recertification under current state law. These requirements were strengthened following the Champlain Towers collapse.

As a result, the Association must complete structural inspections and repairs, implement required life‑safety systems, plan for long‑term capital maintenance, and fund this work through assessments, reserves, and/or financing. The Association, and by extension all of the Owners, are obligated to perform and fund this work as long as the Condominium is in place.

Postponement is not an option.

Financial Planning and Assessments

For many years, the members of the Association approved budgets that did not fund reserves. As a result, when major repairs became necessary—as is common for buildings of this age—the costs are addressed through a Special Assessment rather than pre‑funded reserves.

To fund the required structural, life‑safety, and electrical work, the Association has approved a Special Assessment of approximately $29 million and is pursuing financing options to help spread payments over time. The Association is required to make reasonable attempts to obtain financing; however, financing, if obtained, affects only how payments may be structured and does not eliminate each owner’s underlying obligation. Assessment responsibilities exist whether or not a loan is ultimately secured.

To help owners plan, the estimated impact of a $29 million Special Assessment—based on current ownership percentages—is approximately:

Studio units: ~$58,000
One‑bedroom / one‑bath units: ~$87,725
One‑bedroom / 1.5‑bath units: ~$94,250
Two‑bedroom / two‑bath units: ~$110,490

These figures are estimates and may change as final terms are determined and work progresses.

In past assessments, the Association has offered multiple payment options, which have included:

Monthly payments through Association‑obtained financing (with interest and, most likely a 10% down payment),
A one‑time lump‑sum payment, and
In limited cases, a short, interest‑free payment window.

While specific payment options for this assessment may vary, owners should plan on the understanding that financial obligations remain in place regardless of whether financing is obtained.

Unpaid assessment balances are required to be resolved at sale or through enforcement actions (foreclosure) provided for under the Association’s governing documents.

Why Owners Are Hearing About Potential Sales

Some owners have received outreach regarding potential purchase agreements for their individual units. This outreach reflects efforts by third‑party buyers to assemble enough agreements that, if thresholds were ultimately met, could lead to a condominium termination and redevelopment under Florida law.

These offers are typically conditional. They depend on a very large percentage of owners agreeing to sell, and that threshold has not been reached. Under Florida law, condominium termination generally requires approval from at least 80% of owners, along with additional legal and procedural steps. (For reference, the South Bay Club consists of approximately 347 residential units.)

It is important for owners to understand that no outcome is fixed today. The likelihood of a sale changes over time based on how many individual agreements are signed and how governance decisions unfold. The Association is not a party to sales of individual units, and no owner is required to participate in these discussions.

Owners who have not yet been contacted may be approached in the future. If you are contacted, you are under no obligation to respond, sign anything, or make a decision on any timeline other than your own.

Governance thresholds and owner protections

In addition to the 80% termination threshold, owners should be aware of how governance and legal protections operate before any termination vote occurs.

With Kaufman‑style protections:
Certain statutory provisions may allow a defined percentage (5%) of owners to formally object to termination, even if overall approval thresholds are met. These protections are intended to provide additional leverage and time for remaining owners.
Without Kaufman‑style protections:
If those provisions do not apply, or are removed or invalidated, termination generally proceeds under the Association’s governing documents (80%) and standard statutory thresholds. In that case, owners who do not sell voluntarily may still be required to sell if approval requirements are met.

(For a better understanding of Kaufman and whether these protections currently apply, see Owner FAQ > How Decisions are Made > The Kaufman Amendment)

Because these protections can materially affect outcomes, owners are encouraged to understand which protections currently apply, how they work, and under what circumstances they could change. Additional detail is provided in the FAQ section of this site.

Notice and transparency requirements

Miami Beach Ordinance 2025‑4736 addresses situations where a buyer acquires or contracts to acquire a minority of units in order to influence association governance. Among other requirements, a bulk buyer must provide formal notice to the Condominium Association once 20% or more of units are acquired or under contract. If such notice is received, the Association is required to inform all owners.

Evaluating offers

If you are considering selling, it is generally advisable to take time to understand:

who the buyer is and their ability to complete the transaction,
the conditions and contingencies in the agreement,
the timing involved, and
the risks associated with conditional contracts.

For additional detail, owners are encouraged to review the FAQ section of this site.

Why Owners May Be Hearing Different Messages

When structural requirements, financial obligations, and third‑party interest occur simultaneously, Owners may hear different perspectives depending on who they speak with and what information is emphasized.

In some cases, some people may describe outcomes as inevitable. This website exists to ensure owners understand what is required by law, what is optional, what depends on future votes, and what is not yet decided.

Learn More at Your Own Pace

For more detail, visit the FAQ for plain-English answers to common questions.

This site is here whenever you're ready.

View the FAQ