The Battle for The Last Jewel in Puerto Madero

The last remaining mega-parcel in Puerto Madero must resolve zoning issues before fetching top dollar.

“For Sale. Prime downtown Buenos Aires parcel ideally located in upscale Puerto Madero neighborhood. Approximately 130,000 square feet suitable for prime residential/commercial, multi-phase development. Pending zoning issue needs to be resolved before high-rise construction is possible. Owners of adjacent parcel strongly oppose new development. Estimated asking price: Somewhere between $15 million and $30 million. Serious inquires only.”

Such might be the listing description for the last remaining mega-parcel in Puerto Madero which Clai­n’s Daniel Gutman describes as “grandmother’s last jewel.” The recent building boom in Puerto Madero prompted many developers to snatch up the largest parcels for high-rise residential, commercial/office complexes and five star hotels.

By 2006, 50% of Puerto Madero’s 15 million square feet were already developed or under contract. But the last remaining mega-parcel is mired in controversy that dates back to 1989 when then-President Carlos Menem transferred by decree over 400 acres of land to the Puerto Madero Corporation, the state body which oversees the sale and development of lots. Back then, when the area was an abandoned port wasteland, zoning and density guidelines were established which probably never envisioned the meteoric rise in the waterfront redevelopment’s popularity.

Fast forward to 2010, Gutman says, and those same zoning restrictions are issues which must be resolved before the sale is authorized. Those opposed include the owners of the adjacent Campo de Deportes where approximately 2,000 Buenos Aires schoolchildren practice sports weekly. They fear losing a portion of their playing fields with the mandated construction of parking lots. Current density, ”the infamous FOT” would also have to be upped by the Legislature to allow high-rise construction. Then, and only then, will grandmother’s last jewel fetch the $25 to $30 million price tag that some envision. Poor abuelita. (Full article)