One of the world's best-known hotel names is coming to Coconut Grove, but without a hotel.

Raffles, owned by Accor, announced its first standalone residential building on Thursday with Miami developers Mast Capital and BH Group. The 35-unit building at 2545 S. Bayshore Drive faces Biscayne Bay, across the street from Monty's.

Prices start at $4.5 million for homes with two to 4.5 bedrooms. Architect Brandon Haw designed the building. Plans call for a restaurant, spa, fitness center and a rooftop pool deck with a bar, Fortune reported. Fortune reported that sales launched Thursday, and the developers plan to collect presales first and start construction next year.

There's no hotel and no overnight guests. "No one is checking out," Omer Acar, CEO of Raffles and Fairmont Hotels and Resorts, told Fortune.

How the site came together

The land held Bayshore Park, a 1960s condo building. Mast and BH Group bought out all 39 units for $28 million, about $718,000 each, and ended the condo association, Connect CRE reported in March.

BH Group's project page lists construction starting in June 2027 and finishing in the second quarter of 2029. For now, the project is in presales. It is not under construction.

It's part of a wider trend in the Grove, where almost no vacant bayfront land is left. The Canero Group bought most of the units at the Virginia Pointe condo for $27.3 million, Connect CRE reported.

What it means for owners and buyers

For owners in older bayfront buildings, Bayshore Park is a recent price point. A developer paid about $718,000 per unit to take over a 1960s building with redevelopment potential. Every building is different, and a sale like this needs most owners to agree.

For buyers, Raffles sits at the very top of the market. The median Miami-Dade condo sold for $417,090 in September, and the county had 12.3 months of condo supply, which favors buyers, MIAMI REALTORS reported. A condo had to sell for about $3.12 million to land in the county's top 5%, as we reported in our luxury market story. Raffles' starting price is above that line.

High-end homes have moved faster than the rest of the market. Million-dollar homes in Miami-Dade had about seven months of supply, according to MIAMI REALTORS. Overall condo supply remains high, as we covered in our condo market breakdown.

The partners could have fit more units but capped the building at 35. "You don't want to be with another 300 neighbors," BH Group founder Isaac Toledano told Fortune.

Buying or selling in Coconut Grove? The Miami Lookout is founded by Joe Biscaha, a Miami real estate advisor with Compass.

Shops and trees in Coconut Grove's village center
Coconut Grove's village center. Source