Why Miami's Coconut Grove is the New Real Estate Hotspot
Resources — Tatiana Vitas
In 2022, the suburb was home to Miami’s priciest residential real estate transaction when entrepreneur and Citadel CEO Ken Griffin paid $106 million for two mansions on a combined lot with expansive bayfront frontage and unobstructed views. Jill Hertzberg of the Jills Zeder Group at Coldwell Banker Realty, who represented Griffin, describes the 4-acre estate as akin to a Picasso and “priceless.”
The Coconut Grove neighborhood, 10 minutes south of downtown Miami, has lived many lives — undergoing many transformations before it became what it is today. The neighborhood has deep roots that make it quite different from any other area in Miami.
In the 1870s The Grove, attracted Bahamians to the area, enticed by the promise of virtually costless land afforded by the Florida Homestead Act, coupled with the familiar allure of a tropical climate. The dawn of the 20th century ushered in a new era with the advent of the Florida East Coast Railway, attracting affluent white settlers in search of idyllic winter retreats — tycoons like William Deering, whose son created one of the area's iconic landmarks, the Vizcaya estate. As time progressed, Coconut Grove blossomed into a haven for creatives, with luminaries such as Robert Frost and Tennessee Williams gracing its streets. The Coconut Grove Playhouse bore witness to the world premiere of Williams' acclaimed production, "Sweet Bird of Youth," further cementing the neighborhood's cultural significance. By the 60s, Coconut Grove had undergone yet another metamorphosis, embracing a bohemian ethos with the emergence of coffeehouses, art galleries, and eclectic smoke shops.
These days, a resurgence in development is taking travelers away from Miami Beach, and into this little Bohemian gem by the Biscayne Bay.
Amid the pandemic, Coconut Grove became a magnet for transplants from cities like New York, Chicago (figures like Griffin), and California.
Its prime location near Miami's finest offerings—from top-tier schools to downtown amenities, upscale dining, scenic parks, and the newly revived Dinner Key marina—drew attention.
One Sotheby’s International Realty's February report confirmed the trend: median single-family home prices in Coconut Grove soared by 43.5% year-over-year, solidifying its status as a sought-after destination in the pandemic-era migration wave.
Martin’s Terra Group is the developer behind several architecturally distinguished projects along Bayshore Drive in Coconut Grove. Grove at Grand Bay was completed in 2016 with dual twisting towers overlooking the bayfront park. Here you can find residences designed by Bjarke Ingles that offer spacious layouts currently being offered between $3.5 million – $12.5 million.
Terra Group is also responsible for Park Grove, which also takes advantage of the bay views and walkability of the burgeoning community. Buyers here can choose between several buildings that were opened between 2018-2020 and all were designed by starchitect Rem Koolhaas/OMA. Mr. C Residences is also in Terra Group’s portfolio and is already sold out prior to its completion later this year.
“I personally believe Coconut Grove is one of the most sought-after neighborhoods in the entire country,” says David Martin, CEO of Terra
Liz Hogan, vice president of luxury sales at Compass Florida, also sees the Grove’s ongoing evolution as a younger demographic moves in.
“People who relocated love the proximity to the water,” she says, although demand far outstrips supply of waterfront homes. The plentiful Florida live oaks and other mature trees of the Grove’s lush canopy add to the tropical vibe.
“You can have the most incredible standard of living in the Grove, plus the real estate value’s always going up — it’s an extraordinary place,” Jill Hertzberg of the Jills Zeder Group at Coldwell Banker Realty says.
For those seeking an extra layer of seclusion alongside waterfront living, Vita at Grove Isle presents an enticing option. This is a new boutique development that is beginning construction this month on the private 20-acre island of Grove Isle. Made up of 65 spacious and fully-serviced residences, topped by 12 duplex-style, Biscayne Bay-facing penthouses (pricing starts at $12 million for penthouses), featuring a tranquil waterfront aesthetic. New homeowners can anticipate an early 2025 move-in date, with residences available for purchase between $5 million and $10 million.
Aside from the newly constructed luxury towers, new residents also have a choice of a variety of single family residences. There are historical homes in Spanish Revival or Midcentury Modern designs, as well as contemporary and minimalistic homes that are of newer construction. Ken Griffin, the founder of Chicago’s Citadel has chosen not one but two waterfront homes for his relocation to the sunshine state with his purchase of philanthropist Adrienne Arsht’s waterfront Coconut Grove compound for $107 million last year.
Adding to the residential surge is the ongoing transformation of Coconut Grove's primary retail and dining hub. Key initiatives include a comprehensive overhaul of the outdated CocoWalk outdoor shopping center, originally constructed in 1990, to feature a refreshed aesthetic, trendy establishments, and an accompanying office complex.
Furthermore, in collaboration with private developers and bolstered by $10 million in FEMA funds post-Hurricane Irma, the city of Miami recently spearheaded a $70 million revitalization of the waterfront Dinner Key Marina. This ambitious project involved the replacement of aging warehouses and tenants with the chic Bayshore Club bar and grill, an expansive esplanade, and modernized boat docks, with additional restaurants and retail venues in the pipeline.
Notably, on Florida Avenue, the $50 million renovation of the historic Mayfair House Hotel & Garden revitalized the 179-room property, introducing a trendy rooftop bar, updated accommodations, and a revival of its Gaudi-inspired charm.
In a perfect little location that is so close to Downtown Miami and Brickell that you can really get by without a car if you have that craving, Coconut Grove is the only place in Miami that will offer such proximity to the business center, has great schools and a thriving community of “stealth wealth” options for down to earth families to grow together.