Rendering of Villa Valencia and Rishi Kapoor (Credit: LinkedIn)

Coconut Grove-based Location Ventures is under contract to purchase a Coral Gables rental complex for $16 million where the firm plans to build a boutique condo project.

Villa Valencia, a 13-story, 39-unit condo building, would be built on the property at 501-525 Valencia Avenue, replacing low-rise apartment buildings built in the 1950s, Location Ventures CEO Rishi Kapoor told the South Florida Business Journal. Units would average $700 per square foot and about 3,300 square feet. The development would also include two lower 4,500-square-foot penthouses an upper-level penthouse with 7,000 square feet of living space.

Amenities would include a pool, Hammam spa, cabanas, a gym, club room, business center and access to private garages.

The seller, TM Residential, led by Matthew Pellar, paid $4.5 million for the 34-unit rental property in 2012.

The area has seen a surge of activity. Nearby, developers are working on completing Giralda Place, a mixed-use development with luxury condos, office space and retail. [SFBJ] – Amanda Rabines