The Hunt for Waterfront

The Hunt for Waterfront
Written by Erik Bojnansky, Senior Writer; Photos by Silvia Ros
May 2014
Intracoastal Mall: New Owners, New Future
T
he Intracoastal Mall lies just four miles south of Aventura Mall, but while the latter receives
millions of visitors each year, Intracoastal Mall is hardly known outside northern Miami-Dade
County.
For one thing, the Intracoastal is a fraction of the size of the gorilla up the road. Aventura Mall
comprises 2.9 million square feet of enclosed retail (the third largest in the United States),
whereas the Intracoastal holds just 234,000 square feet of shops, restaurants, and other
commercial entities spread out on a 26-acre site alongside the Intracoastal Waterway.
Located at NE 35th Avenue and 163rd Street in the affluent North Miami Beach neighborhood
of Eastern Shores, the mall houses a Winn-Dixie supermarket; Dollar Tree, Old Navy, and T.J.
Maxx chain stores; a waterfront Duffy’s Sports Grill; a couple of vocational schools and a
daycare center; a storefront synagogue; and various independently owned restaurants and
service-oriented businesses. Until last month, the Intracoastal also had an eight-screen movie
theater.
The mall seems to be popular among Eastern Shores residents, though its overall draw is
irregular. Sometimes the Intracoastal is busy, sometimes it’s dead. Speaking of death -- locals
still talk about a murder-suicide that took place two decades ago in a waterfront restaurant
called Shooters that operated in the space Duffy’s now occupies.
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The Hunt for Waterfront
Written by Erik Bojnansky, Senior Writer; Photos by Silvia Ros
May 2014
Three years ago, May Shigetomi moved her popular restaurant, Yakko-San, to the Intracoastal
Mall from her former location at 170th Street and W. Dixie Highway. Her loyal customers
followed her. Good thing, too, because, according to Shigetomi, they’d never heard of the mall.
“This shopping center is very hidden,” says Shigetomi, who invested close to a million dollars
fixing up her large space a few doors east of the Winn-Dixie. “It’s the place under the bridge.”
Actually, the Intracoastal Mall is next to the bridge -- a drawbridge that connects North Miami
Beach (and Oleta River State Park) to Sunny Isles Beach, a two-mile-long oceanfront city
brimming with high-rises. Yet even in that city, the Intracoastal Mall is not so well known.
Michael and Gil Dezer, a father-and-son real estate development team based in Sunny Isles,
plan to change that. They’re the new owners of the Intracoastal Mall, and they intend to promote
the heck out of it. They’re developing a “five-star” cross-marketing plan between the mall and
the Trump International Beach Resort, a 31-story tower the Dezers developed in Sunny Isles.
The Dezers (pronounced like desert) are also seeking a new movie theater company that will
modernize the old Intracoastal 8 and replace the Jupiter-based chain Frank Theatres, which
closed the cinema without warning (more on that later).
And then, anywhere from five to fifteen years from now, the Dezers will replace the mall with
2/9
The Hunt for Waterfront
Written by Erik Bojnansky, Senior Writer; Photos by Silvia Ros
May 2014
four or more high-rises between 20 and 25 stories tall. Gil Dezer, the 39-year-old president of
Dezer Development, envisions the upcoming project as a taller version of Boca Raton’s Mizner
Park, where retail is located on the ground floor and residential units are stacked on top.
“Mizner Park is absolutely beautiful,” says Dezer. “It’s a great place for friends and families to
meet and walk the streets. It’s safe and beautiful. I think this area is ripe for it.”
Future development is what motivated the Dezers to buy the property in the first place. In
December 2013, using proceeds from the sale of their Howard Johnson Dezerland Hotel in
Miami Beach, they bought the Intracoastal Mall for $63.5 million from Canyon-Johnson Urban
Funds, a $1 billion California real estate investment company co-owned by former NBA Hall of
Famer Magic Johnson. (The Dezers sold the Dezerland Hotel, a resort they’d owned since
1985, for $65 million just two weeks before closing the Intracoastal deal.)
Several obstacles impede immediate development of the Intracoastal. For one thing, most of
mall’s tenants have long-term leases, some stretching in excess of ten years with options to
renew. Then there’s the zoning, which limits residential structures to 600 units and caps height
at 15 stories.
But the people of Eastern Shores, where four of the seven members of the North Miami Beach
City Council live, could pose the most serious threat to the Dezers’ development aspirations.
Residents of Eastern Shores, an area with 330 single-family homes and townhouses, as well as
3/9
The Hunt for Waterfront
Written by Erik Bojnansky, Senior Writer; Photos by Silvia Ros
May 2014
several apartment buildings, have been wary of high-rise development at the Intracoastal Mall
for decades. Their primary concern: traffic congestion.
The only point of entry for the roughly 3000 people of Eastern Shores is NE 35th Avenue, a
four-lane road that runs along one side of the Intracoastal Mall and includes a guarded gate.
Chuck Asarnow, president of the Eastern Shores Homeowners Association, predicts there’ll be
major litigation against any high-rise project unless traffic congestion is addressed. “How do you
dump more people onto NE 35th Avenue? How do you get more people out of there?” he asks.
“Now, during the season [November to May], the traffic is lined up for blocks.”
Yet not everyone is against high-rises at Intracoastal. Susan Fried, a veteran political consultant
and 47-year resident of North Miami Beach, says the city is in serious need of additional tax
revenue for its long-term fiscal survival. In her opinion, the Intracoastal Mall site is better suited
for high-rise development than for a low-rise shopping center.
“You look at that piece of land, and that’s a prime location that desperately needs something
done with it,” Fried says. “I believe the highest and best use for it is high-rises.”
The North Miami Beach City Council is already planning to set up “overlay districts” that will
encourage new development within parts of the five-square-mile city. During a recent workshop,
Mayor George Vallejo asked that the city examine the current zoning of the Intracoastal Mall
and the surrounding Eastern Shores area no later than October.
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The Hunt for Waterfront
Written by Erik Bojnansky, Senior Writer; Photos by Silvia Ros
May 2014
Vallejo
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people.”
5/9
The Hunt for Waterfront
Written by Erik Bojnansky, Senior Writer; Photos by Silvia Ros
May 2014
the
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lexchange
6/9
The Hunt for Waterfront
Written by Erik Bojnansky, Senior Writer; Photos by Silvia Ros
May 2014
ong
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of
Marina
as
well,
company,
del
and
Sol:
three
purchased
1063
years
condo
later,
the
units
property
the
spread
original
for
$8
among
owners
million
Developers
announced
plans
Stanley
to
build
Phyllis
Baumann
Mall.
bought
Eastern
the
land
Shores
for
residents
million
in
1985
and
still
proposal,
NE
35th
Avenue.
again
citing
traffic
concerns,
until
Baumanns
to
pay
for
the
opposed
expansion
the
of
The
screened
attracted
the
1989,
told
crowds
the
mall’s
the
followers,
independent
Baumanns
first
were
years
more
while
modest
films
itThat
was
diners
the
at
built
mall
the
than
with
Intracoastal
in
to
at
more
1987
Rubloff
the
bustling
refined
--the
may
Inc.,
8.
The
have
a
tastes
Aventura
Chicago-based
waterfront
been
went
Mall,
its
to
best.
restaurant
Ruth’s
which
company,
General
Chris
had
and
opened
Steakhouse.
Cinemas
and
bar
at
in
Shooters
tenant
1983.
Still,
In
Herald
community
don’t
that
know
he
the
hoped
shops
the
are
new
here,”
owners
he
would
said.
build
aagreed
bigger
sign:
“A
lot
of
people
in
the
A
70-year-old
settlement.
grisly
crime
NMB
physician,
brought
Police
the
met
wrong
his
Rolando
estranged
kind
Baldomero
of
publicity.
wife,
Rita,
told
On
age
the
March
47,
at
16,
Shooters
1990,
Orlando
to
discuss
Ramos,
aland
divorce
aeast
Herald
screaming,
hair,
shot
“Oh
her,
my
then
God,
turned
he’s
got
the
a“Because
gun
gun!”
on
Ramos
himself.
burst
into
kitchen
that
behind
Rita
ran
her,
into
dragged
the
kitchen
her
by
7/9
The Hunt for Waterfront
Written by Erik Bojnansky, Senior Writer; Photos by Silvia Ros
May 2014
Ram
itby
request
to
2004
build
Realty
went
the
residential
Services
mall
nowhere.
was
towers
of
mostly
Palm
at
vacant.
Beach
the
site,
That
Gardens
arguing
year
bought
Ram
that
such
Realty
aexchange
property
move
asked
could
the
ineventually
2000
NMB
save
for
City
the
$21.3
Council
property.
toThe
allow
but
Despite
the
mall’s
sad
fortunes,
the
land
itChris
sat Johnson
on
skyrocketed
in
value.
The
Woolbright
glory
and
the
former
physical
Intracoastal
days,
spots
Development
offering
improvements.
for
breaks
Shooters
for
hands
on
$48.3
Under
and
rents
again
Ruth’s
million.
Woolbright,
and
in
special
2006,
Woolbright
Steakhouse.
storefront
when
leases
itthe
focused
in
was
spaces
sold
on
to
began
bringing
Boca
for
long-term
filling
Raton-based
the
again,
mall
commitments
back
including
its
Woolbright,
in
foreclosure
March
2012,
action.
however,
tochanged
surrender
was
having
the
mall
its
own
to
Magic
financial
problems,
and
his
which
business
partners
led
in
the
amillion,
company,
G
ilbe
Intracoastal
helps
Dezer
out,
says
and
Mall,
his
sometimes
father
ahad
limited
is
in
hangs
liability
charge
out,
company
of
at
the
the
mall.
mall.
managed
Indeed,
by
the
Michael
mall’s
and
actual
owner
Dezer.
is
Dezer
Still,
Gil
Christopher
waterfront
months
concept
ago.
with
restaurants
Springer,
While
Springer.
Michael
manager
at
“They’re
the
Dezer
mall’s
of
really
163
looked
eastern
nice
Ponte
on,
people,
edge,
Italian
Gil
enthusiastically
says
personable,”
Restaurant
first
met
and
he
Michael
says.
Raw
the
“They
Bar,
and
cross-marketing
one
really
Gil
of
Dezer
several
care.”
asigns
few
Occasionally,
like
Auto
ais
Museum
car.”
(Miniature
Springer
at
the
Dezer
cars
will
are
see
Collection.)
displayed
Gil
Dezer
at
driving
the
mall
around
in
ahe
storefront
the
property
advertisement
inNeomi
aDezer
“golf
cart…
for
the
shaped
Miami
the
May
Dixie
recently
first
Shigetomi,
Highway
time.
treated
Next
restaurant.
owner
him
time
to
of
items
you
Yakko-San,
She
have
from
didn’t
to
her
pay
says
new
for
menu.
who
she
it.’
remembered
he
“I
was
told
until
him,
someone
seeing
‘You
are
Gil
my
told
her.
at
Shigetomi
her
this
old
isstyle,
W.
free
“He
very
good
personally
landlord.”
a
very
nice
guy,”
Shigetomi
says.
“He’s
not
like
snooty-rich-I-don’t-care.
He’s
Although
mall
tenants
the
BT
one
of
them
may
have
been
frightened
spoke
to
appreciate
by
it.
the
Dezers’
responsive
management
Gil
from
were
mall’s
aggressive,
Dezer
Frank
posted
previous
says
Theatres,
on
he
and
owners
the
he
windows.
the
what
intends
“didn’t
chain
he
Frank
have
to
calls
that
sue
aoperated
Theatres
aknow
Frank
very
friendly
aggressive
Theatres
the
owed
conversation
Intracoastal
back
for
management
the
rent,
with
rent
8.
says
A
ashared
he
few
couple
Dezer,
style.”
says
days
itlandlord,
of
Dezer
who
owes.
later,
representatives
adds
does
“closed”
that
plan
the
to a
8/9
The Hunt for Waterfront
Written by Erik Bojnansky, Senior Writer; Photos by Silvia Ros
May 2014
Frank
e-mail
the
Theatres
declared
company,
Theatres
to
Chuck
itresponded
had
begging
no
didn’t
Asarnow
plans
by
return
itof
thanking
toof
reconsider
reopen
the
phone
Eastern
the
the
calls
Eastern
the
theater.
Shores
by
decision
deadline.
Shores
Homeowners
to
community
However,
abandon
Association,
the
the
for
cinema
company
their
patronage
complex.
who
did
had
return
but
written
Frank
to
Eastern
are
many
a
section.
weekend,”
about
people
Shores
the
in
prospect
this
says,
residents
area,
referring
high-rises
going
may
be
to
to
the
more
the
replacing
AMC
movies
anxious
Aventura
the
at about
Aventura
mall,
24
the
Asarnow
megaplex
closure
Mall
is
explains,
just
of
in
the
a
nightmare,
mall’s
Intracoastal
half
seriously.
entertainment
especially
8 than
“For
they
on
The
sent
Intracoastal
supposed
to
Dezer]
the
topic
new
was
e-mail
is
to
tenants,”
just
of
8he
stay
had
such
to
as
his
open
been
surprised
importance
the
constituents
for
struggling
mayor
six
as
months
wrote.
that
we
about
and
were
Mayor
“Given
at
its
the
athat
owners
greatly
Vallejo
theater’s
that
they
a
had
reduced
shut
has
transition
sudden
planned
taken
down
rent
closure.
an
so
deal
to
and
interest
abruptly.”
leave.
was
then
Vallejo
agreed
“Frank
in
turn
it.
noted
Last
the
to,
Theatres
building
[Michael
month
that
the
he
was
over
with
Local
aan
crowd-averse
new
operator.
moviegoers
“We’re
really
need
going
not
to
despair.
upgrade
Gil
the
Dezer
theater,”
says
he
he’s
promises.
close
to
making
aan
deal
Feedback:
[email protected]
9/9