Map: Here are 655K sf of offices on tap in Miami Beach
Sure, Don Peebles and Barry Sternlicht got a hard “no” this election on plans to build offices. Not to worry. Many others have projects on tap
Miami Beach voters shot down a November ballot measure for office buildings on city-owned sites near Lincoln Road.
But the city still is poised to get 10 projects with more than 655,000 square feet of offices on sites other than those proposed in the referendum.
The failed referendum was for two proposed projects: A Don Peebles-led team, which included ex-Miami Beach Mayor Philip Levine and Scott Robins, wanted to build 80,000 square feet of offices. Another group, led by Integra Investments and including Barry Sternlicht and Michael Comras as investors, planned on 130,000 square feet of offices on a separate nearby location.
Peebles and Robins said they might try their proposal again down the line, possibly tweaking their plans. Integra’s Nelson Stabile said the firm isn’t considering another whack at its plan.
Because the Lincoln development sites are city-owned parking lots, a new proposal would have a long way to go. Developers could submit an unsolicited proposal, which means the city would have to open the bidding process to any other interested developers. Or, the city could again issue a solicitation for proposals and narrow down the top bidders. Either way, it would mean starting from scratch and again requiring a referendum.
“I think we are just going to keep our parking lots as surface parking lots given the voters’ appetite,” said Mayor Dan Gelber.
In the meantime, 10 projects backed by developers and investors — from New York’s Michael Shvo and ex-Google CEO Eric Schmidt to local tycoon Jorge Pérez — are on tap in Miami Beach.
Most of the builders have taken a liking to the city’s South Beach neighborhood, including the Sunset Harbour and South of Fifth areas. Pérez is betting on an island just off the MacArthur Causeway connecting the Beach to Miami.
“There seems to be, organically, a market for” offices, Gelber said.
Here they are:
Michael Shvo wants to redevelop the Alton Road commercial strip that once was home to South Beach staple Epicure Gourmet Market & Café with 250,000 square feet of offices and retail.
Shvo also wants to build 21,000 square feet of offices on the top five stories of a six-story building with a coffee shop on the ground floor along Washington Avenue.
In addition, Shvo wants to redevelop an existing 13-story Lincoln Road office building, known as the clock tower for its prominent clock display.
While the Washington Avenue project has city approval, the Lincoln Road project is up for a vote by the Miami Beach Historic Preservation Board on Dec. 13, and the Alton Road proposal is slated to go before city boards next year, according to a Miami Beach spokesperson.
Bets on Sunset Harbour
Bradley Colmer’s Deco Capital Group and RWN Real Estate Partners, part of billionaire Marc Rowan’s family office, are developing a five-story Eighteen Sunset with two stories of offices.
The project, between Purdy Avenue and Bay Road, has commanded pre-leasing asking rents in the $150-per-square-foot range, triple net, some of the highest on record in South Florida.
Nearby, a partnership among Related Companies’ Bruce Beal, SL Green’s Andrew Mathias and Boich Investment Group’s Wayne Boich wants to build a mixed-use office project on Alton Road.
Jorge Pérez’s Related Group has approval for a 75-foot tall office building on Terminal Island.
The project could bring 160,000 square feet of offices plus helicopter pads and a mega-yacht marina.
Ex-Google CEO Eric Schmidt is targeting deep-pocketed tenants with his The Fifth Miami Beach project. Asking rents start at $170 per square foot.
Schmidt has partnered with Sumaida + Khurana and Bizzi & Partners on the development.
Construction will start this year and completion is expected in early 2024.
The Gebbias’ Siebert Financial and Rise Financial will open their new headquarters at 653 Collins Avenue in January, family members said.
The firms, which now are in temporary space nearby, relocated from their previous base in Jersey City, N.J.
The Gebbia family, which previously was linked to “The Real Housewives of Beverly Hills,” are retrofitting the Collins building from retail into workspace.
Pebb Capital and Maxwelle Real Estate Group are redeveloping the closed Bancroft Hotel into a private club with members-only offices. The project will create 50,000 square feet of offices at the Art Deco building that dates back to 1939.
Rishi Kapoor’s Location Ventures just started construction of its Urbin project.
While the development along Washington Avenue will have 69 residences (all sold out), it also will include 20,000 square feet of coworking space.