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South Beach’s Clevelander To Be Transformed Into Affordable Housing Development

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The Clevelander Hotel and Bar announced a transformational redevelopment of its current site designed to address the lack of affordable housing in the area. This residential project will be the first of its kind in Miami Beach developed under Florida’s newly enacted Live Local Act.

The Clevelander has engaged a prominent architect to develop what will become one of the most significant affordable housing developments ever to be built on private land in the City of Miami Beach. 40 percent of the units will consist of affordable housing rentals.  The new development will be built on the sites of the Clevelander and adjoining Essex House hotel properties, which are both owned by Jesta Group. The Art Deco facades of these historic buildings shall be preserved and retained.

The lack of affordable housing in Miami Beach has created a pervasive labor shortage in Miami Beach’s hospitality industry.  Workers – particularly those in the hospitality industry — are unable to live near their jobs because of the cost of housing, forcing lengthy daily commutes to and from work.  This labor shortage was further exacerbated in the last few years due to the large number of hospitality workers leaving the industry during the Covid lockdowns.

“We are now facing a severe labor crisis in Miami Beach’s hospitality industry,” says Clevelander spokesperson and Shutts & Bowen attorney Alexander Tachmes. “It is extremely difficult to attract and retain talent in an industry with a dwindling labor pool and nowhere for existing employees to live.”

In the coming days, the Clevelander will be meeting with the City to submit architectural plans for this project under Florida’s new Live Local Act.  The Live Local Act, which went into effect on July 1, 2023, is a statewide workforce housing program designed to increase the availability of affordable housing opportunities, thus allowing Florida’s workforce to live in the communities in which they work. The Act makes it economically feasible to build affordable housing by eliminating harsh and overly restrictive zoning regulations.

For example, for a qualifying project under the Act, the maximum height allowed for an affordable housing project can be as tall as the highest building allowed within one mile of the site.  In the case of the Clevelander property, the maximum height allowed is approximately 30 stories.  Similarly, the maximum density allowed is equal to the highest density allowed anywhere in the respective city.  Under the Act, the Clevelander redevelopment project’s maximum density would be 150 residential units per acre. Additionally, the affordable housing units would be guaranteed to stay affordable for 30 years.

“Since purchasing the Clevelander Hotel and Bar a few years ago, we have been proud to operate this legendary and iconic establishment in South Beach.  Although we are happy to continue operating as we have, some have expressed a desire that we change our business model at the property.  With the Live Local Act, we now have a unique opportunity to do that.  The Act allows us to redevelop the Clevelander and Essex House sites with enough density and square footage to justify the shift in our business model while providing an important public service in the form of affordable housing,” said Anthony O’Brien, Senior Managing Director of Jesta Group. “We are excited at the unique opportunity to offer true affordable housing on South Beach which will remain in place for decades to come.”

The new development will transform the legendary Clevelander from its current use as a hotel and bar with outdoor entertainment until 5 a.m. into a residential development with hotel services and a high-end restaurant on its ground floor.  The Clevelander’s current staff will be given priority to fill positions in the new project.

For years, the Miami Beach Mayor and Commission have been attempting to change the business model of South Beach in order to reduce its supposed dependency on nightlife tourism. Until now, there has been no forum for dialogue with the Mayor’s office regarding reasonable and effective tools that would make it financially feasible to revamp the Clevelander’s current business model.

Today, thanks to the Florida Legislature, the economic paradigm for development on Ocean Drive has finally been sufficiently modified to make possible a change of use at the Clevelander.  Notably, this change is occurring because of economic incentives and cooperation, rather than punitive legislation.

“We applaud the State of Florida for making this happen,” added Tachmes. “This is a huge win on multiple levels. The city wins by achieving its goal of turning a nightlife venue into a sophisticated restaurant and replacing hotel rooms with residential product on Ocean Drive.  The city and hospitality workers win by the introduction of a significant quantity of affordable housing, which will give the hospitality community greater options to live in the community in which they work.  And the Clevelander wins by replacing a highly profitable business with enough potential development revenue to justify a change in business models.  And all this can be done while maintaining the beautiful historic Art Deco facades that have made this property and the surrounding neighborhood so iconic.”

 

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Oldest Public Building In Miami Beach Gets New Life

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Miami Beach’s oldest surviving public building, most recently called the Miami Beach Municipal Golf Course Clubhouse, has been restored as the Carl Fisher Clubhouse along with an adjoining annex building as part of the Miami Beach Convention Center complex.

The clubhouse, opened originally in 1916, and the annex, opened in 1937, have been restored as a single entity by R.J. Heisenbottle Architects and now host a restaurant and meeting space.

Under the management of Spectra Venue Management, the 5,000-square-foot clubhouse offers public parking and public transportation accessibility on Washington Avenue. The new Rum Room restaurant and Venu meeting space opened this year in the restored structures.

The clubhouse was constructed in 1916 for flamboyant promoter Carl Fisher, the developer of Miami Beach, and was designed by August Geiger, a prolific Miami architect. Records from the time say “the clubhouse was designed in an eclectic revival style with Spanish and Dutch Colonial elements.”

The City of Miami Beach brought in the Heisenbottle firm in 2016 to restore the clubhouse after years of neglect. In 2018, the city approved clubhouse renovations for more than $3.2 million.

“It’s a great historic building in Miami Beach that can continue to be enjoyed by generations to come thanks to its new use,” Mr. Heisenbottle said in a written release.

That use is Venu, which the Heisenbottle firm describes as “a newly renovated space for elegant private events and upscale meetings” in the clubhouse and the Rum Room, in the annex building, “a 1920s restaurant with an enticing tapas-style menu and local South Florida rums.”

 

Source:  Miami Today

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Iconic New York Pizzeria To Open Its First Florida Location In Miami Beach

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New York staple Roberta’s, a Michelin Bib Gourmand restaurant from co-founder Brandon Hoy and two-Michelin-starred chef and co-founder Carlo Mirarchi, has been announced as a tenant at its luxury Miami Beach condominium 72 Park. The Miami Beach outpost will be the iconic brand’s first location in Florida.

Established in 2008, Roberta’s started in a modest cinder-block warehouse in Brooklyn. The restaurant quickly became a neighborhood icon, capturing the hearts of foodies across the state with its diverse menu of artisanal plates and seasonal dishes curated with local, international and homegrown ingredients from its rooftop garden. The success prompted the owners to open a handful of locations across New York City. The brand has since expanded globally with a variety of eateries, from full-service restaurants to more casual concepts.

“We are very excited to introduce Roberta’s to the vibrant city of Miami,” said Roberta’s chef and co-founder Carlo Mirarchi. “The energy and diversity of Miami’s food scene resonates deeply with our commitment to providing fun and memorable dining experiences for our guests. With its rich cultural tapestry, Miami provides the perfect canvas and 72 Park the perfect home for Roberta’s first step into the Florida market.” 

In addition to the restaurant, the Roberta’s team will also be bringing some of their popular programming.

“We love the neighborhood,” added Roberta’s co-founder Brandon Hoy. “And can’t wait to not only serve this community, but to also add some Brooklyn charm to the city’s culinary landscape.”

Roberta’s will wrap around the northwest corner of 72 Park, a brand-new residential building located at 580 72nd St. The eatery will occupy 3,000 square feet of 72 Park’s approximately 10,000 square feet of prime, ground-floor retail space. The 22-story tower is slated for completion in Summer 2024 and will feature luxury residences ranging from 410 to 2,200 square feet, with prices starting in the $700,000s.

Designed by Built Form, 72 Park is centrally located within a pedestrian-friendly neighborhood where residents and guests can enjoy the best of both worlds: a peaceful, charming beachside community alongside the excitement of Miami Beach with instant access to recreation, restaurants, retail, music, arts and culture.

 

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Ritz Carlton Owner Proposes 15-Story Tower, Lincoln Road Rebuild

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The owners of the Ritz Carlton South Beach have submitted plans to build a new residential tower while rebuilding a portion of Lincoln Road.

The project is proposed to include:

  • The rebuilding of Lincoln Road in front of the Ritz Carlton
  • A new 15-story, 212-foot tower with 30 residential units

The Ritz Carlton is also planned to get a single-story rooftop addition to its cabana building, a redesigned pool deck, rear yard and restaurant area, and a new entry canopy on Lincoln Road.

At the Sagamore building (part of the Ritz Carlton property), improvements will include the restoration of the façade, modifications to the lobby, and a new outdoor seating area and corridor.

The hotel room count on the property is currently at 477, but will be reduced by 43 rooms after the renovation.

The Lincoln Road rebuild will include:

  • Pedestrian and vehicular access changes to both sides of Lincoln Road to maximize the pedestrian experience and safety while retaining full vehicular access
  • The installation of a new gateway element at the street end
  • Improvements to the beach access walk, including the widening of the walkway to improve visibility
  • The introduction of new open space and landscaping on the Beach Walk.

The public-private development agreement would need approval from the Miami Beach Commission. The developer would assume maintenance of Lincoln Road, beach access, and the Beach Walk in front of the hotel, which currently are the City’s obligations.

Kobi Karp is the architect of record for the new tower and renovations.

Naturalficial is overseeing landscape design, including the Lincoln Road rebuild.

The Historic Preservation Board is set to review the proposal on September 12.

 

Source:  The Next Miami

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Miami Retail Leads Nation In Rent Growth As Brands, Chefs Follow The Money

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Michelin-starred chefs and high-end retailers continue to expand into Miami as they follow their customers from places like New York, California and Chicago.

The flow of new tenants is pushing up rents to prices second only to New York City, according to a Lee & Associates report, and driving vacancy down to among the lowest levels in the country.

Miami retail vacancy is at 3.7%, 50 basis points below the national average of 4.2%, and the city leads all major U.S. markets in rent growth, rising 11.6% year-over-year to $42.40 per SF, according to a second-quarter report from Marcus & Millichap.

The market “is exponentially better in terms of occupancy and rental rates than pre-pandemic. I think it’s just a different world that we live in now,” said Lisa Ferrazza, the senior director of retail leasing at the Miami-based investment firm Tricera Capital. 

The city’s trendiest neighborhoods have seen the greatest growth, driven by a rise in demand from restaurants and luxury retailers. Asking rents in Brickell and Miami Beach were above $70 per SF at the start of April, according to Marcus & Millichap, and highly coveted space can fetch considerably more.

Ferrazza said her firm has done deals above $115 per SF in Wynwood with retailers looking to capitalize on Miami’s rising profile. She said retailers are bringing flagship stores to the city in growing numbers.

In the second quarter, Ralph Lauren and Amsterdam-based furniture company Eicholtz opened flagship locations in the Miami Design District, a high-end shopping destination that spans 18 blocks.

Lincoln Road, the iconic shopping destination in Miami Beach, landed eight new tenants this quarter, including Cheesecake Factory and a range of retailers selling everything from footwear to candy. The Museum of Ice Cream revealed plans for a 14K SF experience-focused shop at Miami Worldcenter, a 27-acre mixed-use development in Downtown Miami that will host the company’s first permanent location.

“If they have determined that Wynwood or the Design District or Lincoln Road is their market and where they want to have a flagship, they’re usually willing to pay the freight regardless,” Ferrazza said.

Much of the demand for space is coming from the food and beverage sector. Miami now has 12 restaurants with Michelin stars after the acclaimed guidebook announced in 2021 that it would begin rating restaurants in the city. The growth of the city’s food scene and influx of new residents is drawing more star chefs and creating expansion opportunities.

“Retailers are one thing,” Ferrazza said. “The pool of expanding soft goods, fashion retailers is much more shallow than the food and beverage market. That’s really where we see most of the activity.” 

Just this week, celebrity chef Juan Manuel Berrientos opened Elcielo Miami at the SLS South Beach hotel, the second location in the city for the Michelin-starred restaurant. Michael Beltran, the chef at Michelin star-earning Ariete in Coconut Grove, announced in May that he would open a cigar and cocktail bar in Miami Worldcenter.

Some of the new upscale restaurants coming to Miami are aimed squarely at the wealthy new arrivals who moved to South Florida during the pandemic.

In March, chef Shaun Hergatt announced plans for a private restaurant and speakeasy concept exclusively for residents at the Perigon condo tower in Miami Beach, which is expected to open in 2026. Weeks earlier, Todd English signed on to open a private lobby restaurant at the Bentley Residences, a 62-story luxury condo tower in Sunny Isles that is also slated to deliver in 2026.

Tricera is working on deals with chefs from Las Vegas and Boston, Ferrazza said.

“We’re getting a lot more Michelin chefs, and everybody knows how competitive the F&B market is,” she said. “So everyone is trying to outdo each other in the Miami market to have a presence to be talked about and be seen.”

Developers are responding to the strong demand by building more space. Across South Florida, there is more than 3.5M SF of retail space under construction, including around 1.9M SF in Miami as of March.

Miami is slated to see 1.6M SF of new space come online in the second half of this year, following the completion of around 400K SF through the second quarter, according to Marcus & Millichap.

Deliveries in Miami will be four times higher than in 2022 and “may result in some upward pressure on vacancy in the near-term while new stock leases up,” the report’s authors wrote. But with vacancy rates at some of the lowest levels in the country, Ferrazza said the market is well-positioned to absorb the new inventory.

The inflow of new residents, growth of tourism and the business-friendly environment in the state has made Miami an ideal location for retail tenants looking to grow, she said.

“I don’t know where else you would look if you are looking to expand throughout the country,” she said.

 

Source:  Bisnow

 

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Fontainebleau Scores $73M Construction Loan For New Convention Center

Fontainebleau Development scored $72.8 million to finish a convention center at its iconic, eponymous Miami Beach resort, property records show.

The 50,000-square-foot facility is being erected on a 1-acre lot at 4360 Collins Avenue, just south of Fontainebleau’s condo component. The five-story convention center and the MiMo-style hotel, which anchors the entire complex, will be connected through a skybridge.

Construction got underway last fall and is scheduled to be completed in 2025. The loan from Goldman Sachs (GS) amounts to a maximum of $72.8 million, with the funds being disbursed incrementally under certain conditions, according to mortgage documents.

“The investment will allow us to deliver a best-in-class meeting and event center to meet the needs of the growing South Florida market for business and leisure events,” Brett Mufson, president of Fontainebleau Development, said in a statement. 

 

 

Source:  Commercial Observer

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13th Floor Assembles Oceanfront Miami Beach Site With $73M Buy

Westgate South Beach Oceanfront Resort at 3611 Collins Avenue_photo credit Trip Advisors 1170x435

13th Floor Investments is assembling a prime oceanfront site in Miami Beach, having purchased an aging resort along Collins Avenue next door to a condo property it terminated last year.

The Miami-based developer paid $73 million for the Westgate South Beach Oceanfront Resort at 3611 Collins Avenue, located north of the Faena district in the Mid-Beach neighborhood, property records show.

The three-story building, which functions as a timeshare resort, was built in 1938 and houses 46 units on 0.8 acres.

The purchase comes eight months after 13th Floor Investments terminated the condo association of All Seasons property, which neighbors the Westgate resort. The move grants 13th Floor Investments full control of the seven-story building, which was completed in 1980 and sits on 0.4 acres.

Combined, 13th Floor Investments’ assemblages span 1.18 acres, and is a likely target for condo development. Bank OZK provided a $51.9 million loan for both properties, according to records. A representative for the developer declined to comment on plans for the site or the price of the All Seasons property, divulging only that Opera Acquisitions LLC, managed by Valerio Spinaci, was a partner and responsible for assembling both properties.

Condo terminations are a growing trend among developers following the deadly collapse of the Champlain Towers South condominium, which was built in 1981 and was poorly maintained. As owners of similar aging condos face expensive assessments to fund repairs, some are opting to sell to developers, who often tear down the building to construct luxury condominiums.

 

Source:  Commercial Observer

 

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Eight New Tenants Set To Open On Miami Beach’s Lincoln Road Promenade

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Lincoln Road, Miami Beach’s iconic outdoor shopping, dining and cultural destination which features more than 200 shops, cafés, galleries and restaurants spanning eight blocks (east to west), will further enhance its offerings this summer by welcoming eight new tenants. The globally recognized, architecturally significant promenade continues to evolve by adding new, unique concepts, popular restaurants and local businesses.

New tenants for Summer 2023 include:

  • Paris St. Germain (opened May 27) – 1024 Lincoln Road – France’s most successful football club is partnering with Lids to give customers a consistent retail experience where they can find team jerseys, headwear, accessories and more, all of which will be fully customizable on-site.
  • Habitat Hyett (opened June 1) – 441 Lincoln Road – This retail store is the premier place to shop for luxurious, hand-selected items for ever-changing habits, whether at home, at work or with their physical body.
  • The Cheesecake Factory (opened June 6) – 600 Lincoln Road – First location on Miami Beach – The culinary-forward leader in experiential dining is relentlessly focused on hospitality. It currently owns and operates 318 restaurants throughout the United States and Canada.
  • Ecco (pop-up through June 30) – 701 Lincoln Road – A global leader in innovative comfort footwear for all ages, Ecco is also the perfect place to shop for accessories ranging from premium leather handbags to accessories and small leather goods.
  • BonBonEtc (opening June 16) – 631-B Lincoln Road – This candy store will carry nearly 1,000 different kinds of candy and vintage items, boxes, metal signs, nostalgic Coca-Cola items and more.
  • Osteria da Fortunata (opening summer) – 607 Lincoln Road – Based on traditional Italian cuisine, this new restaurant concept offers a down-to-earth country-style approach to Italian fare with organic recipes and handmade pasta.
  • Voyage Luggage (opening summer) – 663 Lincoln Road – This one-stop shop for premier luggage and travel products offers a curated assortment of the world’s most exceptional travel brands.
  • Salt & Straw (opening summer) – 749 Lincoln Road – First location on Miami Beach – This ice cream shop is known for its small-batch, chef-driven ice cream that’s handmade using local ingredients.

Lincoln Road also recently extended its partnership with Smorgasburg for another year. The open-air food market featuring dozens of local vendors takes place every Friday from 5:30-10:30 p.m. on Lincoln Road’s 1100 block and has become a local favorite hot spot.

The new tenants will join top retailers such as Nike, Apple, Zara, Lululemon, Anthropologie and West Elm and popular restaurants Mila Miami Rooftop Restaurant & Bar, Juvia Rooftop Restaurant, Chotto Matte Miami, Issabella’s, Tacombi Taqueria and Harry’s Pizzeria.

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Steven Oved Buys Boutique South Beach Hotel For $15M

The boutique Greenview Hotel in Miami Beach has traded for $15 million. An entity tied to investor Steven Oved was the buyer of the 45-key hotel at 1671 Washington Avenue, just north of Lincoln Road

The hotel was built in 1939 in classic Art Deco style, and its facade was restored while it was owned by Marcelo Tenenbaum of Blue Road Development, which purchased the hotel for $1.1 million back in 2010, according to property records. 

Blue Road, led by Tenenbaum and Jorge Savloff, listed the property for sale — for $15 million — in 2020 along with another hotel it owned, the Casa Hotel on Washington Avenue, The Real Deal reported at the time.

While the Greenview Hotel has not been sold since 2010, Tenenbaum and Savloff are no longer part of the property’s ownership. Both were removed from the owner entity, Greenview Hotel LLC, in 2021, according to state documents. A recent lawsuit filed in Miami-Dade Circuit Court involving Greenview identifies the principals as real estate broker Roberto Camilo Matarraz and Pedro Miguel Rodriguez, so it’s not entirely clear who controls the property.

Oved, with his partner Jack Avid, have made several purchases in South Florida over the years, including an apartment portfolio in Broward County in 2019 and an apartment building in Coconut Grove in 2016, The Real Deal has reported

CBRE’s Natalie Castillo and Austin LaPoten executed the Greenview deal on behalf of the seller. 

 

Source:  Commercial Observer

 

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Miami Beach South Of Fifth Projects Could Score More Density

In Miami Beach’s South of Fifth neighborhood, more density is the carrot. And three hotel owners are the rabbits.

And at least one of those hospitality landlords, an affiliate of Miami-based Key International, is eyeing that carrot.

The Miami Beach City Commission on Wednesday approved a measure that would encourage South of Fifth hotel owners to redevelop their properties into condominiums or multifamily projects. By agreeing to convert their land from transient uses such as hotels, hostels and short-term rentals to residential use, the owners would get an increase in the allowable floor area ratio, or FAR, to 2.75 from 2.0, according to a city memo.

Key International owns the Marriott Stanton South Beach at 161 Ocean Drive, through its affiliate Komar Investments, records show. The Key International affiliate is interested in exploring possible redevelopment of the 224-room hotel and taking advantage of the density bonus, said Christopher Penelas, an attorney for the hotel owner.

The legislation, sponsored by Miami Beach city commissioner Alex Fernandez, was mandated by Miami Beach residents. In November, 66 percent of voters approved a referendum directing the city to enact the legislation.

In order to receive the density bonus, property owners must pledge that any new projects will not allow rentals shorter than six months.

 

Source:  The Real Deal

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