Kengo Kuma-Designed Miami Project Starts Construction

An $85 million construction loan propelled the start of construction for Japanese architect Kengo Kuma’s U.S. mixed-use debut, in Miami’s Design District, after a two-year delay.

Developers Lionheart Capital, Leviathan Development, Well Duo and the Lane Organization landed financing from Chicago-based Monroe Capital and broke ground on Mirai Design District, an office and retail project at 4218 Northeast Second Avenue.

Allison Greenfield, founder and managing partner of Leviathan Development, said the financing came together through Well Duo and Berkadia, but Monroe was familiar with the development team.

“We knew Monroe already from some earlier deals that they had tried to do with us, specifically a deal that we’re doing up in New York and kind of lost out,” she said. “So, when we came with this deal … it was the right time and the right fit for them and for us.”

The project will feature a three-story building with 41,000 square feet of Class A office space and 16,000 square feet of retail, restaurant and hospitality space, along with a 2,000-square-foot standalone house designed as a sculptural architectural centerpiece. The project is slated for completion in 2028.

Originally expected to start in summer 2024 and wrap up by the end of last year, the project was delayed by design revisions, a lengthy entitlement process and efforts to secure a high-profile tenant that remains under wraps, Greenfield said.

She added that the development team is pursuing a long-term ownership strategy and expects to hold the property for at least a decade.

Kuma, whose work is known for blending architecture, nature and public space, designed Mirai as a “floating lantern” with a transparent ground floor, layered facade and central garden.

The architect is also behind Aman Residences Miami Beach, the 18-story luxury condominium under construction in the Faena District by Vlad Doronin’s OKO Group and investor Len Blavatnik’s Access Industries. While Kuma has designed several projects across the U.S., Mirai marks his first mixed-use development in the country.

Developers are bullish that the steady migration of financial firms and creative businesses to Miami will ignite leasing demand in the Design District for boutique office options instead of larger spaces in Wynwood and the Brickell Financial District. Mirai’s office space is aimed at family offices, small and midsize funds, and design-focused companies.

Lionheart founder and CEO Ophir Sternberg said the firm spent years assembling property along Northeast Second Avenue and views the development as a catalyst for the corridor’s next phase of growth.

The developer acquired the remaining interest in the property at 4218 Northeast Second Avenue in October 2023 for $5.5 million. The building is home to Lionheart’s headquarters.

The development site includes that property, as well as 4200 and 4240 Northeast Second Avenue. Miami Design District Associates, which consists of Craig Robins’ Dacra, L Catterton Real Estate and Brookfield Properties, sold the latter two lots to Lionheart Capital, Leviathan Development and Well Duo in September for $20 million.

“What Craig did so well is create a place where you want to do everything: you can go shopping, eat well, and there’s cultural events that are programmed in the district throughout the year,” Greenfield said. “The limitation in the Design District has been the lack of square footage, because it’s concentrated in so few hands.”

The project joins a growing wave of development in the Design District, which has evolved from a warehouse district into one of the nation’s top luxury retail destinations and an emerging residential hub. An analysis by The Real Deal found nearly 1,000 residential units in the pipeline for the neighborhood.

Retail tenants for the Mirai will be selected with an emphasis on design, culture, hospitality and lifestyle brands, according to the developers.