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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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3-Story Food Hall Planned For Aventura

Aventura Food Hall Planned For 2777 N.E. 185th St_Image Credit Architectonica 1170x435

An affiliate of Cabi Developers is planning to build a three-story food hall on a vacant site in Aventura.

The developer filed an application with city officials concerning the 1.45-acre site at 2777 N.E. 185th St. The developer acquired the property for $5.77 million in 2007. It’s located behind the Walgreens and Wild Fork Food stores.

The development design for a retail and restaurant establishment with both indoor and outdoor dining space is being modified by Cabi. On the ground floor alone, plans include various restaurants with a combined indoor space of 14,091 square feet, plus extra space on the second and third floors, according to the preliminary site plan by Miami-based Arquitectonica. A drop-off area and a modest parking garage would be present.

The food hall, dubbed L’Isola, will include select restaurants and vendors with a varied selection of international cuisine, as well as a rooftop restaurant and cocktail lounge, according to Miami-based attorney Brian S. Adler, who represents the developer in the application. He stated that there would be 19,200 square feet of internal area, in addition to rooftop and outdoor eating.

 

Source:  SFBJ

 

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Construction Permit In Process For 289-Unit Wynwood Urby, Contractor Named

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The permit was applied for in May, with the full plans filed on June 27 and now in review.

The hard construction cost is estimated on the permit at $69,800,000. Beauchamp Construction is listed as the contractor.

The project was first reviewed by the Wynwood Design Review Committee in April 2022.

A total demolition permit to clear the site was applied for last July. Then in August, a utilities deal for water and sewer was signed.

Wynwood Urby is planned to include:

  • 289 apartments
  • 8,000 square feet of full service restaurant
  • 9,200 square feet of retail
  • 1,450 square feet of office
  • 193 parking spaces

Urby is a joint venture between David Barry and Brookfield Properties.

Amsterdam’s Concrete is the design architect, with 5G Studio the architect of record.

 

Source:  Next Miami

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Eco Stone Plans $35M Multifamily Project In Allapattah

Eco Landing Rendering_Image Credit-Eco Stone Group 1170x435

Eco Stone Group plans to begin construction this month on its first ground-up development, a $35 million apartment building in Miami’s Allapattah.

An affiliate of Miami-based Eco Stone secured a $23 million construction loan from Popular Bank for Eco Landing at 1515 Northwest 18th Street and 1601 Northwest 18th Street, said company CEO Javier Gomez.

Eco Stone, also led by Gomez’s brother Juan Gomez, is finalizing Eco Landing’s master permit, and expects to break ground soon on the proposed eight-story building with 125 apartments, Gomez said.

Last month, Eco Stone demolished a two-story building on the site with 16 apartments built in 1987, and also tore down a one-story building with 20 apartments completed in 1972. Between 2019 and 2020, the affiliate paid a combined $4.2 million for the two properties.

Founded in 2003, Eco Stone is also targeting Allapattah for its second planned development, Eco Station Tower at 1880 Northwest 36th Street. That project will entail 150 units primarily for low-income tenants, Gomez said.

 

Source:  The Real Deal

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Total Demolition Permit Submitted For 2000 Wynwood

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A total demolition permit has been submitted for the 2000 Wynwood site, where an apartment building is planned.

The demolition permit was applied for on July 20, with the full plans filed August 9 and now under review.

The estimated cost listed on the permit is $13,000.

A new construction permit to build a multifamily rental building was submitted in December 2022 and is still in process.

In February, the developer signed a deal for water and sewer utilities for 310 apartments, 1,000 square feet of full service restaurant, and 8,300 square feet of retail.

In June, the project had hearings before the Wynwood Design Review Committee and the Urban Development Review Board.

Both boards voted to recommend approval with conditions.

The 12-story project is proposed to include:

  • 310 residential units
  • 9,416 square feet of retail
  • 308 parking spaces

 

Source:  The Next Miami

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Tricera Capital And LNDMRK Development Secure Several Exciting Tenants At Society Wynwood

Society Wynwood_Image Courtesy of Boardroom PR 1170x435

Tricera Capital, the Miami-based commercial real estate firm led by Ben Mandell, and LNDMRK Development completed several leases totaling almost 14,000 square feet at major mixed-use development Society Wynwood.

Newly signed tenants include Starbucks, Chama De Fogo Brazilian Steakhouse and Nacho Daddy.

Starbucks will occupy 2,615 square feet of retail space at Society Wynwood. The Seattle-based coffee giant has a strong presence throughout South Florida, including at Tricera’s Shops at the Press in West Palm Beach.

Chama De Fogo leased 5,522 square feet at Society Wynwood for its second Miami location. The Brazilian steakhouse concept has become extremely popular over the years, and Chama De Fogo prides itself on its authentic gaucho barbecue and high-quality meats. The Society Wynwood location will feature a casual dining restaurant, butcher shop and delicatessen.

The Las Vegas-born Nacho Daddy opened its first store in 2010. Today, the modern Mexican-style restaurant has grown tremendously with six locations nationwide serving gourmet nachos and more. The 5,434-square-foot lease in Society Wynwood will be the restaurant’s seventh and the only one in Florida.

“We are excited to be part of the continued growth of Wynwood and bring compelling tenants such as Starbucks, Chama De Fogo and Nacho Daddy to this project,” said Tricera President | Head of Leasing Dustin Ballard. “Society Wynwood will add to the elevated ecosystem of restaurants, retail and living experiences the eclectic art district offers its residents and guests.”

Irma Figueroa, Andrew Rosenberg and Max Gelband with Comras Company are Tricera and LNDMRK’s leasing representatives at Society Wynwood.

Elizabeth Higgins, Marty Arrivo and Aracibo Quintana of Acre represented Starbucks in its lease. Elizabeth Hazan of Byblos Hospitality Holdings was a consultant for Chama De Fogo. Jenny Geffen and Dave Preston with Colliers represented Nacho Daddy.

In partnership with Society Wynwood developers PMG and Greybrook Realty Partners, Tricera and LNDMRK are forward-purchasing over 32,000 square feet of ground floor retail at the project. The 2431 NW Second Ave. development is conveniently located in the center of the Wynwood Art District, within walking distance of many new developments and retail shops. Along with the ground-floor retail, Society Wynwood has almost 300 modern residential units and a private parking garage, making it the area’s premier new development.

 

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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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