Midtown Development Seeks Tax District for Miami Mall Redev

The long-awaited redevelopment of the Shops at Sunset Place in South Miami is seeking a nine-figure boost for the mixed-use project’s infrastructure.

Midtown Development, led by founder Alex Vadia, is requesting Miami-Dade County’s approval to establish a special taxing district that would finance $149 million in infrastructure for its planned 10.2-acre Downtown SoMi mixed-use redevelopment at 5701–5795 Southwest 72nd Street.

The developer proposed creating the Downtown SoMi Community Development District, a special-purpose governmental entity that can finance infrastructure and oversee its maintenance within the development. County commissioners are scheduled to consider the proposal during their July 21 meeting.

The district could issue tax-exempt bonds to finance the infrastructure, with the debt repaid through assessments on properties within the development rather than county tax dollars. The $149 million would fund roads, utilities, stormwater improvements, a public parking garage, landscaping, security improvements and a chilled water system.

Vadia’s proposed seven-building Downtown SoMi project includes over 200,000 square feet of retail space, 1,513 residential units, 287 hotel rooms, 65,900 square feet of office space, a 1,300-seat movie theater and 2,786 parking spaces, according to the county memo.

If approved, infrastructure construction is slated to start in 2027 and wrap up by the first quarter of 2029.

The ordinance would appoint a five-member board to oversee the district consisting of Vadia, Richard Perez, Antonio Ferrer, Azam Malik and Dean Warhaft, all of whom are affiliated with Midtown Development.

A spokesperson and attorney for Midtown Development did not immediately respond to requests for comment.

Redevelopment of the former Shops at Sunset Place has been in the works for nearly a decade.

Previous owners Federal Realty Investment Trust, Grass River Property and Comras Company first proposed overhauling the struggling mall in 2016 before selling it to Midtown Development in 2021 for $65.5 million.

The South Miami City Commission approved Midtown Development’s plan in 2024, requiring the project to meet benchmarks for increasing the property’s taxable value by 2034 to help ensure the redevelopment moves forward and generates new tax revenue for the city.

The Shops at Sunset Place joins more than a half-dozen shopping centers across Miami-Dade, Broward and Palm Beach counties that are slated for redevelopments that would add thousands of apartments alongside retail, restaurants, offices, hotels and entertainment.

Midtown Development’s other projects in Miami-Dade include the recent completion of The Standard Residences in Midtown Miami with Carlos Rosso’s Rosso Development and Hyatt. The 12-story, 228-unit tower was the first new condo in the neighborhood since 2018.

The project has over 34,000 square feet of amenities, including a landscaped rooftop with a pool and a restaurant and bar by the Juvia Group, plus a gym, a pickleball court that doubles as a disco room. Retail tenants include Mannarino, Sushi Garage, Rosetta Bakery Café, and Privato Speakeasy.

A block away from The Standard, Vadia teamed up with Rosso and Proper Hospitality Development to build Midtown Park Residences by Proper on the nearly 5-acre site at 3055 North Miami Avenue.

Sales launched last year for phase one, a 28-story, 288-unit condo tower that will mark the first of six buildings. Prices will range from the low $700,000s to $2.7 million, excluding penthouses.

Vadia and Rosso plan a $2 billion mixed-use development at the site with four residential towers and two office buildings, more than 120,000 square feet of retail space, a public racquet court and padel club, and a 25,000-square-foot gym.