Is that the market value for comparable parcels ?
Well, there are almost no prime waterfront sites left in the area to compare. Since covid, the already strong real estate market skyrocketed even stronger. I believe it is the related group who offered 500 million dollars to buy out an old condo building a little further South on collins for redevelopment. Ultimately it depends on the density which the city will allow to build over there.
In this case it is not so much about the real $ value. If this site would not have had this history there would have been much more people interested... Most local developers chose to stay away from even considering putting up offers.