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801 West 41st street suite 600, miami beach, fl 33140
305.695.8700 | [email protected] | WWW.TERRANOVACORP.COM |
@terranovacorp
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HelloHelado!
Tempting
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De ddinos
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Great
sundaes
Refreshing
smoothies
www.freddo.com
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610 Lincoln Road, Miami Beach, FL 33139. Phone: 305-604-0065
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Ir resisti
Tr ifredd ble
os
contentS
6 i want to do more
An interview with Terranova
Chairman, Stephen H. Bittel
14
the art of building
better schools
18 south florida
urban street
retail report
44 shb's top
ten gems
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TERRANOVA
801 41st STREET SUITE 600, MIAMI BEACH, FL 33140 | WWW.TERRANOVACORP.COM | [email protected] | 305.695.8700
follow us
@terranovacorp
Chairman
Stephen H. Bittel
executive Vice President / Editor-in-Chief
Mindy McIlroy
managing Editor
Rebecca DeVille
Research Director
Alina Matas
Graphic Designer
Michael Dorer
Research Assistant
Kesley De Miranda
Contributing writers
Alina Matas
Rebecca DeVille
Andrea Speedy
publisher
Terranova Corporation
advertisers
Freddo
La Dorada
Le Macaron
Lincoln Road
Miracle Mile
Steve Madden
Terranova Corporation
801 W 41st Street, Suite 600
Miami Beach, Florida 33140
305.695.8700
[email protected]
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TERRANOVA
Stephen H. Bittel, chairman
of Terranova Corp:
I want to
’
do more
‘
By Ina Paiva Cordle
From The Miami Herald, 10-12-2014© 2014 The McClatchy Company. All rights reserved. Used by permission and protected by the Copyright
Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.
S
tephen H. Bittel, chairman of Terranova Corp., has reached new
heights in the realm of commercial real estate since his firm’s $342
million sale of a portfolio of six buildings on Lincoln Road in Miami
Beach — one of the largest property deals in South Florida history.
Terranova remains an owner and managing member of the properties, in
a new partnership with Morgan Stanley Real Estate Investing. In total,
Terranova Corp., which Bittel founded in 1980, owns and operates more
than $1 billion of real estate in Florida, mostly in South Florida.
We sat down with Bittel in his Miami Beach offices to discuss his background and company, and
then emailed him these questions to which he responded.
Q. You are a Miami native, yes?
A. I am as native as one could be, having been born
at Jackson Memorial Hospital, the second of three
children of my very active parents, Jordan and Judy
Bittel who grew up on Miami Beach. My father always
joked that when our families got down here, there were
only Claude Pepper and the alligators. A product of the
Miami Dade County Public School system from grades
one through 12, I continued my education at Bowdoin
College, with my sister, and son, later graduating from
Bowdoin as well. While it’s a long way to Brunswick,
Maine, we still feel uniquely close to the college.
abroad. As the son and grandson of attorneys, I
grew up always planning to follow in their footsteps
professionally, but by the time I began at the University
of Miami School of Law, I was headed in another
direction, working full time in commercial real estate
during my first year of law school, and then starting
what is now Terranova during the fall of my second
year. While somehow I managed to graduate and pass
the bar as a result of some remarkable study group
partners who always reeled me back in to focus on our
exams, working full time while simultaneously a full
time law student might not be recommended for those
requiring normal sleep.
Q. Did you originally intend to be a lawyer?
Q. How did you start Terranova Corp.?
A. After Bowdoin, I spent a year in Europe, as a
Watson Fellow, and applied to law school while
A. In the fall of my second year of law school, my
then-employer suggested a change in my
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compensation from salary to all commission, that
would enable me to earn much more. After thinking
about it overnight, I agreed with them and left to
begin what is now Terranova. While creating my own
company had always been a dream, the idea had been
to first get through law school. But alas, as in the John
Steinbeck novel title, “the best laid plans of mice and
men…”
So there I was, at the age of 24, engaged, with a
mortgage, a full-time law student, and working on my
own out of our first home. Retrospectively, it doesn’t
seem like the best of business plans, but somehow, it
worked. The hope was that I would continue to build
upon relationships developed during my Watson
Fellowship year in Europe and to attract capital from
abroad to invest with me in South Florida commercial
real estate. I found the Terranova name, Latin for
new land or new world, in the back of a dictionary
in the foreign words section, as we all used to have
dictionaries back then.
Every European with a high school education or more
had taken several years of Latin in school so they
would know what the company was about, and every
Spanish speaker would know as well, so I only had to
explain it to the English speakers. Our first logo was a
globe with the Terranova name created by a University
of Miami graphic arts graduate student, and while we
still have the same font, the globe has been downsized
to incorporate it into the orange that is the most
recognizable part of our logo today.
Q. What were your first investments?
A. Our first investments were “friends and family”
syndications of two small unanchored strip shopping
centers on Sunset Drive, magically just down the street
from Sunset Corners, the wine and gourmet store
started by my grandparents 60 years ago, and now
owned and wonderfully operated by my older brother
and first cousin. Next came a five-building office park
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TERRANOVA
on Coral Way, the Biscayne Plaza Shopping Center
(with which we are still involved), and then an industrial
park on Milam Dairy Road. All of these projects had
other investors, but we retained the management and
leasing on all of them, developing what has become
our core competency in operations. In 1986 the
combined effect of changes in the tax laws and new
regulations governing the Savings and Loan industry
plunged the overbuilt commercial real estate sector
into a deep recession. Fortunately, the company,
which by then had just over 30 team members, was
competent and strong enough to race into what is now
called the distressed business, to offer our services
to insurance companies and banks which rapidly
became involuntary owners of commercial real estate
when their loans defaulted. We helped them get title
and then did workouts all over the state including
management, leasing and construction management,
eventually restoring the value, and then taking the
assets to market for sale.
Q. How did Terranova grow from there?
A. Our property base continued to grow, reaching
a peak of over 8 million square feet, with a team
of over 100 members. We saved our profits and
started buying again, this time partnering with high
net worth families. We focused on supermarket/
drug store anchored shopping centers in growing
suburban markets in Miami Dade, Broward, and Palm
Beach counties, always looking for opportunities in
growing neighborhoods that we believed would lead to
increasing sales and growing rents.
Q. Why did you focus on strip shopping
centers?
A. We loved this asset class because we believed that
the chain store relationships could be developed and
result in multiple leases with the same tenant, whether
new to market like Starbucks when they first arrived in
South Florida, or Publix, with which at one time we had
i want to
do more
16 separate stores. It was the same with Walgreens,
and apartments were first newly occupied, they
Winn Dixie, Payless Shoes, and you name the chain,
were filled with growing young families that were
we were doing business with them. Our size gave us
the ultimate consumption unit. As the families grew,
incredible tenant access at the highest levels of the
they consumed more and more. Our retail tenants
retail companies, and we could do more and more
experienced growing sales which quickly meant
stores with substantially the same lease agreement.
growing rents. As the communities aged, the children
It was a special combination, and we used this
matured and moved out, leaving us smaller groups
access to build what we called our “yours, mine, and
of consumers. Sales growth began to slow and we
ours” portfolio, with some properties pure third-party
were concerned. At the same time, younger people
assignments, some joint ventures with either high net
relocating to South Florida started thinking about living
worth families or institutions, and some were all ours.
in more urban areas like Miami Beach, Coral Gables
Some of our notable properties with which we have
and Brickell. For the first time in my life, our suburban
been involved in different capacities over the last 30
communities were commencing an uncomfortable
years include Biscayne Plaza, Suniland, Kendall Mall,
transition from endless suburban sprawl to real urban
Flagler Park Plaza, all in Miami Dade; Westfork Plaza,
pockets of activity. Our first buy was an eight-building
Paraiso Plaza, Country
portfolio on Miracle Mile
Walk, Weston Lakes, and
in Coral Gables over
“Coral Gables has a walkable downtown 10 years ago, which we
Sheridan Mall in Broward;
and Boca Valley Plaza,
core that is getting better and better with still own today, now with
Shadowwood Square,
our second institutional
strong daytime population from a robust partner. Coral Gables
Jupiter Square in Palm
Beach County. All told, we
has a walkable downtown
office market, great restaurants and
have worked on nearly
core that is getting better
growing residential.”
100 different open air
and better with strong
shopping centers over the
daytime population from
past 30 years throughout
a robust office market,
Florida, plus a large number of office and industrial
great restaurants and growing residential. The city
properties.
leadership has committed to a streetscape project to
further upgrade the common areas of Miracle Mile
which should make the future even better.
Q. How did you become interested in urban
retail?
A. In the mid 1990s, the residential land surrounding
our shopping centers had been absorbed and
substantially built up with housing. When the homes
Q. What originally caused you to think of
Lincoln Road?
A. We had chased deals on Lincoln Road since 2002,
and had a great history of
coming up short. We loved
the street because it had a
special combination of local
customers and tenants,
and international visitors
and retailers. The café life
in the center remains the
engine that really drives the
energy of the street. When
the economy slowed down in
2007, we stopped buying and
focused on our existing large
portfolio. We had plenty of
work to do and weathered the
storm comfortably, focusing
again on our core operational
competency, and benefiting
from low leverage and no
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i want to
do more
property level recourse debt.
Our team member count shrunk
through some attrition, but
we are proud of having zero
layoffs, and only one person
who took a salary adjustment
— me, and I took no salary for
several years.
"I am passionate about making our
community and country better. We
are committed to this as a family
and company."
With retail sales showing growth in December of
2009, we made the call that it was time to go all in
on a bet on a recovering economy and thought there
was no better place than Lincoln Road. Our first buy
with an institutional partner was a three-building,
$52 million deal in December of 2010 that included
the Sushi Samba restaurant on Pennsylvania and
Lincoln, and the Starbucks building on Meridian and
Lincoln — getting us two of the very best corners on
Lincoln Road. At a price of $850
per square foot, people
called from around the
country to tell me
I had gone
crazy.
They did not understand that
the numbers were even worse,
as one of the buildings was on
Lincoln Lane, to the north of
Lincoln Road and not as valuable
as Lincoln Road. Our plan was
simple then and not a lot different
than in the past, as we thought
we could move average rents of $65 per square foot
to $130, and we planned to replace the Lincoln Lane
building with a new three-story retail store.
Two years later, we bought three more buildings
for $139 million, all on Lincoln Road with the
same partner, at what then seemed like a far less
astonishing $2,300 per square foot. Once again we
had a plan, as we bought with average rents of $130
per square foot, with the hope to get to a then market
rate of $300 per square foot as leases expired. Since
then we have received approvals from the Historic
Preservation Board on Miami Beach to add additional
square footage to two of our buildings. Together the
two buys combine to approach almost thirty percent of
the retail space on Lincoln Road.
Q. You just sold your six-property
portfolio for $342 million,
one of the largest
property sales in
South Florida
history.
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TERRANOVA
i want to
do more
You retained ongoing ownership as a partner
with Morgan Stanley Real Estate. What are
your plans for the properties now?
A. We are laser-focused on executing our leasing and
development plan, seeking out exciting new retailers
from around the world to make the Lincoln Road
dining and shopping experience one of the best in the
world. As we find premier retailers and restaurateurs
to join us, we will be ever-sensitive to maintaining the
right possible mix of offerings to appeal to everyone
who loves to spend time eating, shopping and
watching people.… We start with a magical location on
Miami Beach, a top destination for local area residents
and tourists from around the world.
We have played an important role joining the property
owners up and down Lincoln Road into a property
owners’ association that we hope will soon transition
into a Business Improvement District like we have
had for years in Coral Gables, where our executive
vice president, Mindy McIlroy, has a leadership role.
The City of Miami Beach has committed to a major
upgrade of the common areas of Lincoln Road to be
designed by a world-class design firm and paid for by
special assessments that the property owners have
been contributing to for many years. This coupled
with a huge upgrade to the convention center and a
new convention hotel, should propel the quality and
quantity of Lincoln Road guests higher than we have
ever known. The new leadership at the City of Miami
Beach understands the unique and powerful role that
Lincoln Road has played in the past, and will in the
future.
Q. You have also been very active
philanthropically and hold a number
of positions in political and nonprofit
organizations. Please tell me about that.
A. I am passionate about making our community and
country better. We are committed to this as a family
and company. Terranova was just the presenting
sponsor for the National
Parkinson’s Foundation Miami
Moving Day. Team Terranova
raised nearly $400,000 making
us the highest first-year team in
history and the top giving team
ever. I am on the Board of Teach
for America Miami because
I believe that every child
should have equal educational
opportunity and that the inner city education gap has
the potential to be the most destabilizing single issue
facing our country. Our TFA Corps members, under the
leadership of our exceptional Superintendent, and with
unmatched commitment and enthusiasm, are teaching
in the poorest neighborhoods and really moving the
needle on educational achievement. I am an elected
member of the Democratic National Committee
because I believe that we are all about giving everyone
in need a hand up and I am delighted to make the
commitment it takes. Two of our children, now adults,
served in the Peace Corps and my wife is a teacher
in the Miami-Dade County Public Schools. All three
of our wonderful adult children share our passion for
helping others. What we lose in sleep, we make up
in our constant effort to improve our community and
country, and that energizes us to do more and more.
We have been so incredibly fortunate and achieved a
level of success we never dreamed possible, so giving
back is amongst our very top priorities.
Q. What is next for you?
A. I want to do more. I will have plenty of time to rest
in my 90s and after, but for now Terranova is focused
on reinvesting in both super core and opportunistic
commercial real estate. Personally, I want to make
sure we have the leadership in place to continue the
positive impact on Lincoln Road and Miracle Mile, as
well as seek out new streets where we can grow a
meaningful ownership position. Everyone asks what
I am going to do after our recent Lincoln Road trade,
and I answer the same every time: I want to do it
again.
Personally, I have so many charitable and political
goals ahead that there is little time for a breather.
Investing in education in Miami is a top priority, when
we get education right, it fixes so many other issues
in our community from homelessness, to crime, to
health, to jobs. The growth of our community demands
an educated populace and we have the right people in
Miami to push this goal forward year after year, making
our Miami community one of the greatest places to live
in the world.
STEPHEN H. BITTEL
Title: Chairman and founder, Terranova Corp., Miami Beach
Age: 58
Born: Miami
Lives in: Coconut Grove
Education: Bachelor’s degree majoring in economics, Bowdoin College, Brunswick,
Maine; Law degree, University of Miami School of Law
Personal: Married, three adult children
Hobbies: real esate, politics, charity, food and wine, Miami Heat fan
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TERRANOVA
817 LINCOLN ROAD • MIAMI BEACH, FL 33139 • 305.534.9997
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The Art
Bett
14
TERRANOVA
of Building
tter Schools
How Miami Dade Public Schools and a Teach
for America Alumnus Changed One School’s
Entire Outlook
By Andrea Speedy
P
roving that progress often begins with the most
unexpected catalysts, one of Miami’s newest public
school initiatives started with simple question – Why
don’t we inspire learning by creating environments that
encourage ideas and creativity?
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15
For the teachers and students
of Jose de Diego Middle
School, located on the edge
of Miami’s hot Wynwood Art
District, the answer was literally
all around them. It just took
some new perspective from a
neighborhood native and her
affiliation with the innovative
Teach for America program.
“I was tired of looking at white
walls,” says Catalina Hidalgo,
the teacher behind what would
become one of the largest
public art projects of its kind. “Wynwood is bursting
with larger-than-life mural artists,” she continues. “I
thought it would be a cool idea to bring a few artists
to paint this school. It just seemed crazy to have giant
stark white walls here and everywhere else around
us is filled with murals.” The Wynwood area of Miami
has the unofficial reputation of being a global mecca
for street artists. Wynwood Walls is a rotating exhibit
that has been painted by many of the top graffiti and
street artists from the U.S., Australia, the U.K, Europe,
South America, and beyond. Hidalgo’s vision was that
the school’s many blank white walls could serve as the
next canvases for Wynwood’s numerous resident and
visiting artists.
Not many fourth-year teachers would have had the
ingenuity, desire, or determination to take on such a
new and unique challenge. However, it is one of the
hallmarks of the Teach for America to match
natural-born leaders to the schools where they can
make the most positive impact. Hidalgo’s placement at
Jose de Diego four years ago is just one such example
of why Terranova’s chairman, Stephen Bittel, counts
Teach for America among his most important volunteer
efforts. “The people best suited to make changes that
really matter for Miami are those who grew up here,”
explains Bittel. “Ms. Hidalgo is one such person – but
the hundreds of students that currently attend Jose
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TERRANOVA
de Diego Middle School, and the thousands that will
follow after them are also important stakeholders in the
future of Miami. Teach for America helped Ms. Hidalgo
channel her energy and enthusiasm into something
with farreaching
impact for
the entire
city. That’s
something any
organization
– and any
teacher – can
be proud of.”
When Hidalgo shared her plan
with her principals. school
district leadership, and later,
Wynwood’s local street art
leaders, the project quickly
grew from a modest wish for
a few murals to an excited
effort encompassing more than
40 internationally renowned
artists and what would become
75 separate murals. Classes
at the school were each
assigned artists, and were
given the opportunity to work
hand-in-hand with them from inception to completion
– often actively painting sections or elements of the
murals. Ranging from colorful decorative motifs, to
bold cartoon-like characters, to pop-art, to traditional
graffiti letters and imagery, to a photo-realistic multistory shark, no two installations are the same…
inviting students, teachers, administrators, and visitors
to explore every corner and immerse themselves in a
new slant on the educational experience. Even more
impressive is the long-term community fundraising
campaign the project sparked, which was launched
during 2014’s Art Basel Miami Beach. Featuring the
mural work of such famous artists as D*Face, Anthony
Lister, Pixelpancho, Pastel FD, AholSniffsGlue, Hox,
the art of
building
“It all serves to illustrate the power of a
cooperative attitude towards education. If
we work together, everything is possible.”
Santiago Rubino and
others, the goal is
to raise $500,000 to
support the creation of
stronger art and music
programs at the school…
an outcome Miami Dade
County Public Schools is hoping to repeat.
“The mural project at Jose de Diego Middle School
drew incredible support and participation from
many individuals and groups, including local and
international artists, businesses and non-profits, the
school district and secondary educational institutes,
teachers, students, and many helpful volunteers,” said
Alberto M. Carvalho, Superintendent of Miami-Dade
County Public Schools. “These diverse individuals and
organizations came together
to produce a world-class,
bigger-than-life permanent
exhibition, now encompassing
more than 75 individual works
of art that inspire our students
and mesmerize thousands of
serves on the board of
Teach for America’s Miami
Chapter. “We believe that
teachers with diverse skill
sets are more empowered to
reach students and generate
results. That begins with
creating a destination students truly want to attend…
a place they enjoy being. Ms. Hidalgo has done it
with art. But it can also happen with gardens, music,
theatre, culinary arts, and countless other sources of
inspiration.”
Today, the Jose de Diego Middle School is one of the
city’s rising stars in terms of forward-thinking vision
and renewed community involvement from businesses
and neighbors. It’s also a great source of pride for
Catalina Hidalgo, who grew up in the neighborhood,
and whose own mother actually attended the school
when she was a child. “I’m just pleased that I was
encouraged to take this idea as far as it could go.
Everyone saw the potential here,” says Hidalgo. Bittel,
who has served as Hidalgo’s mentor for the past
four years could not be prouder of her, echoes her
satisfaction, “This is an instance
where together we have
succeeded because everyone
put the interests of the students
first. From Ms. Hidalgo, to the
school administration, to the
school district, to Teach for
America, to local businesses
that donated paint or materials,
to the artists themselves, it all
serves to illustrate the power of
a cooperative attitude towards
education. If we work together,
everything is possible.”
visitors who
see them.
Because of its
success, we
are exploring
the possibility
of recreating
a similar program at other schools.” Of course, for
the results to be sustainable and effective, the School
Board will need a steady stream of fresh ideas from
invested teachers. That is where Teach for America
steps in. “Our mission, as an organization, is to build
strong educators that can hit the ground running
where they’re needed most,” says Bittel – who also
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17
south
florida
urban
Street
retail
report
2015 edition
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TERRANOVA
Retail Report
A
n unrelenting draw toward urban lifestyles characterized South
Florida’s major retail streets in 2014, as national and international
retailers grabbed new locations in urban settings. Not only national
and international, but local restaurants and cafes, fashion stores, and
art galleries continue to find a thriving environment for new concepts
and a fertile ground for expansion in the region’s major retail streets.
As a result, average asking rent climbed on all South Florida major
retail streets. Vacancy increased in six of the streets, but increases were
either minor, or reflective of unique circumstances on each, such as new
construction on Collins and relocation of large tenants on Lincoln.
Miami Beach continues to stand out as a stroll-andshop destination. Two of its streets – Lincoln Road and
Collins Avenue – show noticeable increases in rent,
keeping them in the lead for asking rents. The streets
benefit from the throng of tourists who stroll around
Miami Beach year round, an activity that makes the
city a showcase for retail brands as much as it makes
it a destination for shopping, dining and entertainment.
Ocean Drive, the beachfront strip lined mostly with
restaurants and hotels, had virtually no availability at
the time of the survey.
Miracle Mile, E. Las Olas Boulevard, Clematis Street
and E. Atlantic Avenue (a new entry in this annual
report) have a more local character, including the
business and nighttime activity of their surrounding
downtowns. That is not to say these streets don’t have
a share of South Florida’s hefty tourism industry -they do -- but their rents and occupancy reflect more
the ebb and flow of local tastes and economy.
Sunset Drive is the most neighborly of all the streets, its
surroundings the most sedate, but it continues to gain
ground as a dining and entertainment alternative to
the more crowded, employment-dense areas of Coral
Gables and Brickell Avenue. Worth Avenue’s collection
of upscale, designer-brand retailers keeps it in its own
class, its market also tailored to the wealthy enclave
of the island of Palm Beach and the social circuit that
spans beyond its boundaries, including European and
Northeast visitors.
Two noticeable trends on all of South Florida’s urban
retail streets are:
• a growing presence of national retailers
• replication of some tenants, local and national,
among the streets.
Urban Outfitters, for example, opened on both Lincoln
Road in Miami Beach and on East Atlantic Avenue
in Delray Beach; BCBG, which has had a location
on Lincoln Road for several years, opened in 2014
on Atlantic Avenue; colorful fashion retailer Fresh
Produce, which has had a location on Las Olas for
several years, now opened a new store on Atlantic
in 2014. On the local front, restaurant chain Rocco’s
Tacos, which first debuted on Clematis Street in 2007
then added a Las Olas location in 2010, now is adding
a location on Atlantic in 2015. The Restaurant People,
recently launched a new concept, Fork & Balls, on Las
Olas. Silk-prints bohemian-fashion retailer RamonaLa
Rue, which started in the owner’s Coconut Grove
neighborhood in Miami, opened locations on Atlantic
and Las Olas in 2014.
Urban retail streets also are where many new-tomarket retailers open shop, either bringing to town
an existing concept that fits in with the particular’s
street scene, or, as is typically the case with local
restaurateurs, bringing a completely new concept to
which consumers along urban streets are likely to be
receptive.
Among new-to-market merchants bringing fresh looks,
tastes and textures to South Florida retail streets
are Las Vegas-based Fine Beauty Cosmetics, which
opened two Tresor Rare stores on Lincoln and Las
Olas; Australian organic cosmetics brand Aesop,
California-based hat maker Goorin Bros., French
fashion retailer Zadig & Voltaire, men’s fashion brand
Ted Baker London and Italian cosmetics brand Kiko
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Retail Report
Milano all opened on Lincoln; Sugar Factory American
Brasserie opened on Ocean Drive. Uruguayan gourmet
pizza restaurant Trouville opened on Miracle Mile;
Atlanta-based Mellow Mushroom Pizzeria opened
on Sunset Drive; Martha’s Vineyard preppie fashion
retailer Vineyard Vines and Swiss fashion label Akris
opened on Worth Avenue.
National, international and growing local tenants are
forging a mixed character on South Florida urban
retail streets, one that combines single-location,
independently-owned stores with more financially
stable and ubiquitous brands. It can still be said,
however, that each street is preserving a unique
character, ranging from urban funky Clematis Street
in West Palm Beach to tony, high end Worth Avenue,
dubbed the Rodeo Drive of the Southeast. Helping
streets preserve their uniqueness are historic
architecture, one-of-a-kind art galleries, cafes and
performance venues, and distinct environments, such
as the daytime corporate chic around Miracle Mile in
Coral Gables to the more free-spirit nighttime crowds
of Miami Beach along Lincoln Road.
High Street Lead
Lincoln Road surpassed its own lead in 2014, its
average asking net rent increasing 21.5% to $330
per square foot, as national and international retailers
keep seeking space on this street, while some existing
stores seek opportunity for larger or smaller spaces.
Indeed, the relocation of existing retailers within the
street contributed to a spike in vacancy to 9.4%,
because two relatively large spaces – Bebe and Apple
– went on the market as these retailers move to new
locations. Apple moved to a new, larger, two-story
building and Bebe moved to a smaller space, formerly
occupied by Pasha’s. Also on the market is the space
of Anthropologie’s store, which is said to be planning
a relocation.
A trend towards multi-story redevelopment on Lincoln
continues, most recently including the re-opening of
Gap in its redeveloped two-story flagship store and
the opening of Urban Outfitters in a two-story space.
Apple has built a new two-story flagship store at 1021
Lincoln, where it demolished the existing structure, in
order to make room for the new store that will double
the size of its existing store on the 700 block.
Retailers on Lincoln Road benefit from the steady flow
of Miami Beach’s international tourism, whose diverse
geographical origins support year-round visitor
activity, with a total of 6 million tourists strolling Lincoln
Road annually. South American tourists from countries
such as Peru, Chile, Brazil and Argentina typically
visit during the U.S. summer, when those countries
20
TERRANOVA
experience their winters. Canadian, European and
U.S. tourists, on the other hand, typically visit during
the U.S. winter to get away from their cold weather.
Ocean Drive and Collins Avenue, which also benefit from
Miami Beach’s tourism crowds, continue going strong
as well. Locals as much as tourists enjoy the restaurants
along Ocean Drive, which remains ever tight, mostly
with local, independently owned restaurants, and there
is virtually no availability on the strip.
Collins Avenue’s tight inventory has spurred new
construction, which has kept vacancy over 7%, but
demand for space boosted its average asking rent
16.6% to $125.35. Like Lincoln Road, Collins Avenue
is a showcase for retailers to expose their brands to
visiting tourists from around the world, and more are
slated to come: Fit2 Run and Charming Charlie have
staked space on Collins, while three other properties
are undergoing redevelopment that will add more retail
square footage.
Worth Avenue has remained strong while other South
Florida venues that have veered into high end territory,
such as Aventura Mall and the Village of Merrick Park.
Designer-lined Worth Avenue has added new fashion
and jewelry boutiques unique in South Florida. Among
new retailers on Worth Avenue is upscale “preppie”
fashion store Vineyard Vines, which hails from Martha’s
Vineyard in Massachusetts.
Urban Shine
Miracle Mile in Coral Gables also remains in an upswing,
its average asking rent jumping to 9.8%, boosted by
increased occupancy. Surrounded in daytime by an
active corporate office scene, and by cultural events
at nighttime, Miracle Mile’s cache is enlivened by new
trendy restaurants, stores and cafes. Newcomers to
Miracle Mile in 2014 include home furnishings stores
Oroa and Veneta Cucine USA, Cherry Blow Dry Bar
and Brazilian shoe brand Melissa, which also has a
location on Lincoln Road.
Sunset Drive, a neighborly street speckled with new
trendy tenants got jazzier with several new restaurants
and bars opening in 2014, including new-to-market
Mellow Mushroom Pizza and local restaurant Station
5 Table & Bar. Another notable newcomer on Sunset is
furniture store Arango, which operated out of Dadeland
Mall for years before closing in early 2014, driven out
by the mall’s high rents.
On East Las Olas Boulevard in Fort Lauderdale, a flurry
of new tenants over the past year has lowered vacancy
to 2.2%, a noticeable drop from 9.8% a year before. The
leasing activity has brought back to life a key corner
of the street, the NEC of Las Olas and 13th Avenue,
where Fork & Balls replaced the shuttered M Bar.
Rebirth and Recognition
This report for the first time includes East Atlantic
Avenue in Delray Beach. This east-west road that
ends at the beach has become one of Palm Beach
County’s most popular urban destinations as part of
Delray Beach’s downtown renaissance, which has
been ongoing for more than a decade. With the beach
and several hotels located on its eastern end, Atlantic
Avenue draws a good share of tourism. But the street’s
lively urban scene, derived from its downtown location
and a local art scene that has been part of the area’s
revival, keeps East Atlantic a local favorite as well.
Accordingly, this street’s vacancy rate hovers around
1%, and its average asking rent surpasses many of
the others.
Most urban among all the retail streets is downtown
West Palm Beach’s Clematis Street, which has
improved its tenancy with new, modern establishments,
and was named in 2014 as one of 10 Great Streets
by the American Planning Association. However,
Clematis Street appears the most challenged of all
streets in terms of rents and occupancy, partly due
to competition from the newer CityPlace multi-block
complex only a few blocks from Clematis. But as
recognized by the planning association, Clematis has
become a natural incubator of start-up enterprises
on the upper floors of its buildings, while its groundlevel retail retains several established favorites, such
as Rocco’s Tacos and Don Ramon Cuban Restaurant,
and houses trendy concepts that continue to show up,
such as this year’s addition of health and fitness facility
ncognito and The Alchemist Gastropub & Bar.
Urban Lure
South Florida’s retail streets benefit from the state’s
robust tourism industry, which continues to grow
unabated. The state attracted 94.7 million visitors in
2014, a 3.5% increase over the previous year before,
according to figures from VisitFlorida, the state’s
tourism marketing organization. Visitor spending in
Florida in 2014 totaled $76.1 billion, a 5.9% increase
from 2013. South Florida accounts for a large portion of
the state’s tourism activity, the three counties totaling
33.3 million tourists in 2014. By county, Miami-Dade
County counted 14.2 million visitors in 2014, Broward
County 13.1 million in 2014, and Palm Beach County
had 6 million in 2014, according to figures from each
county’s convention and visitors bureau.
Visitors to South Florida are drawn to the region’s
beaches, golf courses, shopping, and increasingly, to
its cultural events. The South Beach Food and Wine
Festival is a nationally-renowned showcase of chefs
and culinary personalities, attracted more than 65,000
guests in 2014; Art Basel, an annual international fiveday art fair composed of about two dozen art shows
throughout different Miami and Miami Beach venues,
TRENDS
21
Retail Report
drew 75,000 art aficionados from throughout the world in
2014; and the Ultra Music Festival, an outdoor electronic
music festival that boasts the world’s most renowned
DJs, drew more than 330,000 attendees in 2014.
Miami-Dade’s Convention and Visitors Bureau is the
only one of the three bureaus that tracks visitors to
specific destinations within the county: An estimated
6.1 million tourists visited Lincoln Road in 2014, and
some 3.6 million tourists visited Coral Gables (where
Miracle Mile is located), higher than the number of
tourists visiting well-known shopping destinations such
as Dadeland Mall, Dolphin Mall and Bal Harbour Shops.
Urban Dynamic
Unlike traditional shopping centers, urban street retail
involves multiple owners, older construction, and
municipal control over parking and traffic rules, thus
presenting block-to-block and even building-to-building
inconsistency in upkeep and appearance. Their owners
have to rely on local government to optimize parking,
common area appearance and traffic flow. But as local
governments increasingly recognize and embrace the
value and appeal of original retail street destinations,
they are supporting and implementing improvements
to these areas, raising their profiles as destinations. As
a result, the streets’ rents and occupancy more often
than not surpass that of traditional shopping centers in
their submarkets.
More retailers are pursuing urban street settings,
increasingly adapting their standard store formats so
as to fit the unorthodox space layouts frequently found
in existing street buildings. They perceive the market
opportunities in street locations, which are the original
mixed-use, live-work-play settings now emulated by
many new developments. Retail street landlords face
the challenge of balancing the need for financially
strong tenants that are able to afford rising rents, with
the appeal of unique local tenants that give the street
a homegrown, local, and ultimately unique character.
Urban Growth
New urban retail development is on the horizon, as
developers meet interest from retailers seeking entry
and expansion in the urban South Florida market.
The Design District, an inner-city area north of downtown
Miami, is undergoing a wave of redevelopment by
a multi-property owner, who plans to transform the
neighborhood into an upscale retail destination planned
to have more than 1 million square feet of upscale retail,
covering a multi-block area from North Miami Avenue to
N. Federal Highway, between Northwest 38th and 42nd
Streets. The project is highly ambitious because much
of the area and its immediate surroundings remain in
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TERRANOVA
rough condition, and this pocket of the city of Miami
doesn’t contain any other major crowd attractions
such as beach or golf resorts or employment centers.
Nonetheless, high-end retailers Louis Vuitton, Hermes,
Cartier and other similar-tier brands have taken the
plunge, and a cadre of others are announced for
2015 openings.
Lincoln Road and Miracle Mile are both slated for
upgrades. The City of Coral Gables has selected New
York-based Cooper, Robertson & Partner’s to design
the $20 million streetscape improvement project to
include wider sidewalks, more trees, garden areas
and outdoor dining along newly landscaped curbs.
Whereas the City of Miami Beach quietly announced
James Corner Field Operations to renovate and
revamp Lincoln Road.
Two other projects in Miami also are capitalizing on the
city’s urban renaissance. Brickell CitiCentre, a mixedused project by Swire Properties, that has broken ground
on a multi-block site just south of downtown Miami,
amid the flourishing Brickell Avenue neighborhood. The
project will include more than 500,000 square feet of
retail space, anchored by Saks Fifth Avenue. Mall at
Miami Worldcenter, a 740,000 square foot retail project
anchored by Macy’s and Bloomingdale’s, is proposed
as part of a mixed-use project to be built on a 27-acre
site from NE Seventh Street to NE 10th Street between
First and Second avenues.
These projects will serve the burgeoning urban
residential base in downtown Miami and the Brickell
area, but their designs involve construction of a mall,
rather than the creation or redevelopment of an urban
retail street. While these new projects will expand
options for retailers and consumers in South Florida,
the original urban retail streets that have survived the
test of time harbor a unique shopping experience that
no developer has been able to duplicate.
TRENDS
23
LINCOLN ROAD
reaching higher to accomodate larger
retailers on lincoln road
National and international retailers continue to seek space on Lincoln Road, raising both
profile and rents on the popular Miami Beach pedestrian street. To some locals’ chagrin,
restaurant and jazz venue Van Dyke Café closed its doors, its space spoken for by national
yoga lifestyle retailer Lululemon. Nike also grabbed space on Lincoln, and Bebe relocated to
a smaller space. Lincoln Road maintains its No. 1 ranking among South Florida’s retail streets,
with average asking rent climbing to $330 in 2014, up 21.5% from $272 in 2013. Upward moves
on the building front continue as well. Gap re-opened in its redeveloped, two-story flagship
store, Urban Outfitters moved into redeveloped two-story space, and Apple relocated to a new
two-level store. The unusually high vacancy rate of 9.4% is due to the relocation of several
large tenants such as Bebe and Apple, whose current spaces are in the market at the time of
this survey.
24
TERRANOVA
Retail Report
Redevelopments, Additions, Renovations
Tenant Moves
1212 Lincoln Road, a mixed-use project that will
include a three- story parking garage and two floors
of retail shops, is proposed on the SWC of Alton
Road and Lincoln Road, just west of the western
end of Lincoln Road’s pedestrian stretch. Tenants
will include Wells Fargo, whose building at 1634
Alton Road will be demolished to make way for the
new project.
Goorin Brothers Hat Shop will open its first Florida
store at 612 Lincoln Road, in the former Kilwin’s
space. Argentinian gelato store Freddo’s opened
at 610 Lincoln, replacing La Lupa di Roma, and
Specs replaced Miami Optics at 608 Lincoln. Kiehl’s
relocated to 540 Lincoln, from 832 Lincoln. French
fashion retailer Zadig & Voltaire will open at 1118
Lincoln. Adidas by Stella McCartney opened and
Ted Baker London replaced Juicy Couture at 1111
Lincoln Road.
The ArtsCenter South Florida building at 800
Lincoln Road was sold to a developer who plans to
redevelop the art studios facility into a new three
level retail and entertainment space.
A three-story retail building is proposed on the
courtyard of the Miami Beach Community Church,
at the SWC of Lincoln Road and Drexel Avenue. The
proposal has to be presented again in 2015 to the
historic preservation board, after the city’s special
master reversed an initial approval, siding with
project opponents who complained the approval
process had been faulty.
A 2-story Apple store is now complete at 1021-1025
Lincoln, where Apple has relocated its existing
store at 738 Lincoln.
A mixed-use, 21,047 square foot addition is
proposed for 1111 Lincoln Road. The two-story
addition would be built on the SunTrust parking lot
abutting the project on the north just off Lincoln
Road, and would include 10,813 square feet of
bank space on the ground floor, 50 new parking
spaces and four residential units on the top floor.
The former Brownes & Co. Apothecary at 827-829
Lincoln was redeveloped into a two-level store
for Urban Outfitters, which relocated from Collins
Avenue. The former Pacific Paradise Co. next door
at 825 Lincoln was converted to an American Eagle
store.
Women’s fashion retailer Club Monaco replaced
shoe retailer Camper at 1006 Lincoln. Nike will
open at 1045/1035 Lincoln, replacing Pottery Barn
and William Sonoma, which haven’t announced
relocation plans. Bebe relocated from 1029 Lincoln
to 900 Lincoln, in the former Pasha’s restaurant
space. (Pasha’s closed its Lincoln location). Athleta
and Intermix each opened a store in Gap’s new
2-story building at 1001 Lincoln. Musical chairs at
927-939 Lincoln: Design Within Reach left 927 as
it relocated to the Design District; sports clothing
retailer Base relocated from 939 to 927; and newto-market cosmetics retailer Kiko Milano opened at
939. Cubavera closed at 934 Lincoln. Cosmetics
retailer Adore replaced Carel Gallery at 922 Lincoln.
Beauty-care products retailer Aesop opened at
830 Lincoln. MET in Jeans closed at 826 Lincoln
and relocated to Collins Avenue. Melissa Shoes
relocated its pop up store at 830 Lincoln to a
permanent store at 821 Lincoln, where it replaced
Tasti Delight. Score closed at 727 Lincoln, Pink
Palm closed at 723 Lincoln and Tiramesu closed at
721 Lincoln making room for a new larger footprint
retailer not yet named. Simon’s Athletics replaced
Athlete’s Foot at 706 Lincoln. Pacific Paradise
Clothing closed at 637 Lincoln.
TRENDS
25
COLLINS AVENUE
tight inventory spurs new retail construction
on collins avenue
26
TERRANOVA
Retail Report
Developers are moving forward with new
construction on the retail stretch of
Collins Avenue, while existing spaces fill
up with new tenants. The vacated Urban
Outfitters, which relocated to Lincoln Road,
has been spoken for, and a tenant is said
to be under wraps for the former Benetton
space as well. Three redevelopment projects
are adding retail space on Collins, but no
tenants have yet been announced for the
new spaces. Accordingly, vacancy of 7.5%
is virtually unchanged from 2013, but new
construction and leasing interest boosted
average asking rent to $125.35, compared
to $107.52 in 2013.
Redevelopments, Additions, Renovations
The former apartment building at 852 Collins Ave. is
being redeveloped into a 3-story retail building, with
4,200 square feet on the ground floor. No tenants have
been announced.
The residential building at 825-827 Collins Ave. is slated
for redevelopment into a 2-story retail building totaling
10,000 square feet.
The historic coral building on the NWC of Collins Ave.
and Ninth Street is being redeveloped into a two-story
retail building with 4,814 square feet on the ground floor.
No tenants have been announced.
The Vitrine, a two-story retail project totaling 7,300 square
feet, is under construction at 909 Collins Ave., formerly
a multi-family building. No tenant has been announced.
Tenant Moves
Fit2Run will replace Urban Outfitters at 653 Collins.
(Urban Outfitters relocated to Lincoln Road.) Italian
women’s jeans store MET in Jeans relocated from
Lincoln Road to 610 Collins, where it replaced Shoe
Freak. French fashion house Vicomte A. opened a store
at 638 Collins, replacing Kid Robot. Women’s fashion
brand Free People, from the same company that owns
Urban Outfitters and Anthropologie, opened a store at
650 Collins Ave. French underwear and swimwear retailer
Pull-In replaced Nicole Miller at 656 Collins. Kardashians’
fashion boutique Dash opened at 668 Collins, replacing
Sisley. Canvas shoe brand Vans will open a store at 670
Collins, in the former United Colors of Benetton space.
Accessories chain store Charming Charlie will open
at 735 Collins. I Love Sushi and Safari Bar & Lounge
opened on the ground floor of the Chesterfield Hotel at
855 Collins. Vapor Shark replaced Puma at 820 Collins.
TRENDS
27
OCEAN DRIVE
long-standing favorites still going strong
on sunny ocean drive
28
TERRANOVA
Retail Report
Restaurants frequently turn over along
Ocean Drive, but spaces rarely stay vacant
for long on this oceanfront stretch of
South Miami Beach. Vacancy is under 1%,
and only one space was vacant at the time
of this survey, marketed as a business-forsale. Noticeable new establishments include
Sugar Factory American Brasserie, which
has made a splash since first opening in Las
Vegas in 2010, and Spanish fashion retailer
Desigual. Many of Ocean Drive’s longstanding favorites are still going strong,
such as News Café, the Clevelander, and
Lario’s on the Beach, which underwent a
renovation.
Tenant Moves
U Rock Couture, Forever Yogurt and Miami Gift Shop
replaced Deco Walk Café at 928 Ocean Drive. I Paparazzi
Ristorante replaced Café Med at 940 Ocean Drive.
Papagayo Restaurant opened at 1052 Ocean Drive. Sugar
Factory American Brasserie and Sushi Couture replaced
Bice Bistro at 1144 Ocean Drive. Leslie Lunch opened
at 1244 Ocean Drive. Spanish fashion retailer Desigual
opened a new location at 1390 Ocean Drive. Gelato 2 Love
also opened at that address. Deco Drive Cigars closed
at 1446 Ocean. Pasta Ria and Art Gallery of Alexander
opened at 1500 Ocean Drive.
TRENDS
29
miracle mile
upcoming streetscape improvements sparks influx of
new tenants on busy miracle mile
With new store windows to gaze at and new trendy restaurant menus to select from, the Mile
got stronger as a destination for lunch, dinner, fashion and gifts; And it’s about to get better.
City commissioners approved a much-anticipated streetscape project that will widen sidewalks,
improve lighting and landscape, and install seating areas along the Mile. Construction is
projected to begin in first quarter 2016. Even before improvements, an influx of new tenants
lowered vacancy on Miracle Mile to 3.6%, down from 4.3% a year before, while average asking
rent increased 9.8% to $57.37.
Tenant Moves
Arissa Couture Bridal replaced M&M’s at 357 Miracle
Mile. Veneta Cucine USA, an Italian kitchens retailer,
opened at 347 Miracle Mile. Bellmont Spanish
Restaurant replaced Leather World at 339 Miracle Mile.
VIXI Gelateria will replace Signori at 374 Miracle Mile.
Bridal boutique Merlili relocated from 88 Miracle Mile to
356 Miracle Mile. Doll retailer Maru and Friends replaced
Merlili at 88 Miracle Mile.
A&M Bellezza Salon replaced Cleber Lopes Spa at
330 Miracle Mile. Furniture store Oroa replaced Snow’s
Jewelers at 299 Miracle Mile. Cherry Blow Dry Bar will
open at 210 Miracle Mile replacing I Designs Opticians
who relocated to 269 Miracle Mile. Cattiva Boutique
opened at 257 Miracle Mile. Razzle Dazzle Blow Dry
Bar opened at 241 Miracle Mile. Ice cream shop Haagen
Dazs will replace shoe store Dulce at 286 Miracle
Mile. Italian restaurant Fratellino replaced Mesa at 264
Miracle Mile. My Ceviche replaced The Burger Joint at
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TERRANOVA
232 Miracle Mile. Uruguayan pizzeria Trouville will open
at 127 Miracle Mile. Casa Mofongo Latin Grill opened
at 130 Miracle Mile. Menchie’s replaced Coco Limon
Frozen Yogurt at 126 Miracle Mile. Skin care retailer Nerio
Camargo replaced Hewryk at 57 Miracle Mile. Pita Bites
replaced Sugar Mama Cupcake Boutique at 94 Miracle
Mile. Uvaggio Wine Bar replaced L’Arte del Buongusto
Café at 70 Miracle Mile. Spy World relocated from 129
Miracle Mile to 44 Miracle Mile.
Demographics
Miracle Mile and Sunset Drive are in the South Miami
submarket. This submarket has an estimated 2014
population of 337,551. The population is 67% Hispanic
and 6% African American. Median age is 44, and
average household income is $70,892. Population in
this submarket grew 6% between 2010 and 2014, and
is projected to grow another 7% in the next five years.
Daytime population is this submarket is 203,360.
TRENDS
31
SUNSET DRIVE
new restaurant concepts
open on neighborly sunset drive
32
TERRANOVA
Retail Report
Despite brisk turnover of merchants on
Sunset Drive, this South Miami destination
remains a tight-occupancy street – due
in part to a small inventory – but also to
fast takers whenever space becomes newly
vacant. New restaurant concepts have
opened to rave reviews in 2014. On the chain
front, long-announced Brother Jimmy’s
BBQ finally opened on the ground floor of
Shops at Sunset Place, and new-to-market
Mellow Mushroom Pizza opened down the
street. The former Chase Bank space is still
empty, but its landlord said the space is
spoken for by an undisclosed tenant. Many
long-standing tenants continue going
strong on Sunset, which gives the street a
stable, neighborly character even as new
trendy merchants jazz it up. Only one space
was available at the time of this survey, with
a letter of intent from a prospective tenant
reportedly signed. Not surprisingly, asking
rent of $69 for that vacant space was a 33%
increase from 2013.
Tenant Moves
Station 5 Table & Bar replaced Sip at 5845 Sunset. Dale’s
Pale Ale replaced Brewskis at 5835 Sunset. Temple: Joy
to the Food opened at 5831 Sunset, replacing Beverlee
Kagan Antique Jewelry. Trattoria Sole closed at 5898
Sunset, and a new restaurant is said to have signed a
letter of intent. Arango Furniture will replace Jorge Hulian
Gallery at 5864 Sunset. Fashion store Market replaced
Cream Beauty at 5820 Sunset. Mellow Mushroom Pizza
Bakers replaced Marhaba at 5701 Sunset Drive. Buns &
Buns opened in the former OMG! Burgers at 5748 Sunset
Drive.
Razzle
Dazzle
Barber Shop replaced
Enjoy (clothing boutique)
at 5740 Sunset Drive.
The
former
Patagonia
space at 5861 Sunset has
been leased to Triumph
International
Cuisine,
but the company hasn’t
announced any plans for
the space. lululemon left
Sunset for Merrick Park.
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33
Retail Report
LAS OLAS BOULEVARD
a flurry of new tenants
brings flair to las olas boulevard
New merchants have poured into Las Olas, lowering the street’s vacancy rate to 2.2%, compared
to 9.8% in 2013. This street abounds with local restaurants, such as long-time landmark The
Floridian and the growing Rocco’s Tacos chains. Rocco’s owners’ new concept – Louie Bossi’s
Ristorante Pizzeria – is among a cadre of new restaurants on Las Olas. Interspersed among
eating establishments are new art galleries, fashion boutiques and cosmetics stores that have
brought flair and variety over the past year. The brisk leasing activity boosted average asking
rent to $42.29 in 2014, up 12% from a year before.
tenant moves
Louie Bossi’s Ristorante Bar Pizzeria will replace SoLita
at 1034 E. Las Olas. Skin care maker and retailer
Tresor Rare replaced Indigo Palms at 617 E. Las Olas.
Sneakers boutique Soles replaced One Click at 717 E.
Las Olas. Grill Republic opened at 817 E. Las Olas, in
the former Voodka Brasserie space, and launched by
Voodka’s owner. Wyland Gallery opened at 822 E. Las
Olas. Forre & Co. Fine Art Gallery replaced hair salon
Yellow Strawberry at 1007-1009 E. Las Olas. Your Fat
Loss Coach replaced Las Olas Wine Café at 922 E. Las
Olas. Hoffman’s Chocolates replaced Udder Sweets
at 920 E. Las Olas. Fashion boutique Ramona La Rue
replaced St. Tropez Bistro at 1010 E. Las Olas. Sweet
Nectar Grill replaced Tundra Las Olas at 1017 E. Las
Olas. An unnamed restaurant will replace the shuttered
Mediterranean Market at 1021 E. Las Olas. Las Olas
Yacht Group replaced Elaine North Asid Design Studio
at 1121 E. Las Olas. Bao Bar & Asian Grill replaced Wild
East Asian Bistro at 1200 E.
Las Olas. Moda Mario relocated to 1200 E. Las Olas,
from 822 E. Las Olas. Real estate firm Real Living
Infinity International replaced Vero Design at 1209 E. Las
Olas. Floors to Go replaced Aqua Beachwear at 1213
E. Las Olas. Lavalier, a jewelry and accessories retailer,
replaced Les Collins hair salon at 1259 E. Las Olas. Fork
& Balls Restaurant replaced M Bar at 1301 E. Las Olas.
An Irish pub is under construction at 1311 E. Las Olas,
former location of Southern Formals. Las Olas Chabad
Jewish Center & Judaica Store opened at 1304 E. Las
Olas. NYC Deli opened at 1306 E. Las Olas. Tiffany Nail
& Foot Spa relocated to 1507 E. Las Olas, from 1311-A
E. Las Olas. Two& (pronounced “Two and”), a local beer,
wine, bicycle and antique store, opened at 1517 E. Las
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TERRANOVA
Olas, on the site of the former Las Olas Mini Mall. A new
Canadian restaurant called Thursday’s is said to be in the
works for 1523 E. Las Olas. Broward Bank of Congress
will replace Sophy Curson at 1508 E. Las Olas.
Demographics
Las Olas Boulevard is in the Dania/So. Fort Lauderdale
submarket. This submarket has an estimated 2014
population of 118,087 and is projected to grow 5.7%
over the next five years. The population is 21% African
American and 18% Hispanic. It has an average household
income of $69,864. Median age is 42. Daytime population
is 113,751. Population in this submarket grew 4.4%
between 2010 and 2014.
TRENDS
35
CLEMATIS STREET
nearby development brings competition
to urban clematis street
Clematis, which continues to struggle against the newer and flashier CityPlace development
nearby, is holding its own. The American Planning Association named Clematis one of “10
Great Streets in America” in 2014.
New crowd-pleasing establishments on the 500 block at the street’s western end have brought
a nice counterbalance to the livelier blocks east of the railroad tracks. The south side of
the 500 block remains largely unoccupied, however, contributing to the street’s relatively
high vacancy rate. Average asking rent in 2014 is $26.34, up 2.6% from $25.67 in 2013. Vacancy
increased to 14.1% from 12.3%, largely due to the closing of a large restaurant (Cabana
Nuevo Latino) that hadn’t been replaced at the time of the survey.
tenant moves
Panaterie replaced Pizza Luna at 205 Clematis. Lynora’s
Osteria, an Italian restaurant, replaced Luna Lounge and
Mediterranean Restaurant at 207 Clematis. Pawn Shop
Bar & Grill replaced Dr. Feelgood’s Rock Bar & Grill at
219 Clematis. Boutique health studio ncognito opened at
221 Clematis. The Alchemist Gastro Pub & Bar replaced
Reef Road and Rum Bar at 223 Clematis. Nico’s Pizza
Italian Cuisine opened at 301 Clematis. C Street Café
opened at 319 Clematis. Sushi Yama,West Palm Trading
Co. and Finer Optics opened at 330 Clematis. Downtown
Vapes and iPhoneFix.com opened in a former pharmacy
space at 420 Clematis. Subculture Coffee replaced Raw
Kitchen at 509 Clematis. Habatat Galleries relocated
from 535 to 513 Clematis. A hookah lounge will replace
Best Darn Kettlecorn at 527 Clematis. Palm Beach Bagel
Bakery & Restaurant will replace Habatat Galleries at 535
36
TERRANOVA
Clematis. Action Sports USA replaced Palm Beach Stitch
at 537 Clematis. Schuck & Janoher’s Footwear & More
opened at 539 Clematis. Keese’s Simply Delicious, an
American and Mediterranean food restaurant that has a
location in Lauderdale by the Sea, replaced Yankee Dogs
at 540-2 Clematis. Cabana Nuevo Latino (restaurant)
closed at 533 Clematis.
Demographics
Clematis Street is in the West Palm Beach submarket.
This submarket has an estimated 2014 population of
272,379, and is projected to grow 6% in the next five
years. The population is 32% African American and
19% Hispanic. Median age is 41 and average household
income is $62,071, lower than $65,978 a year before.
Daytime population is 146,932. Population in this
submarket has grown between 4% and 5% since 2010.
TRENDS
37
WORTH AVENUE
european labels open first u.s. locations on
designer-lined worth avenue
38
TERRANOVA
Retail Report
Street-fronting space on Worth Avenue
doesn’t stay empty for long, and this kept
vacancy at 1.4% in 2014, virtually unchanged
from a year before. Average asking rent
increased to $113.96, up 34% from $85.22 in
2013. This Palm Beach designer-lined fashion
street added several new stores from
European labels that have made it their first
U.S. location. Meanwhile, Neiman Marcus
and Saks Fifth Avenue continue anchoring
Worth Avenue, and some existing tenants
spiced things up: 120% Lino opened a second
Worth Ave. location; Herve Leger relocated
to a new space; and Kate Spade will open a
store where Juicy Couture once stood, as a
result of recent brand reshuffling by Juicy’s
corporate parent.
tenant moves
Swiss fashion label Akris, Tamara Comolli Fine Jewelry,
Pretty Ballerinas (shoes and accessories), Calamassi
Italy (handmade shoes and accessories), Golfino (golf
apparel), Le Visage Cosmetics, Shi London Cashmere
and Engels & Volkers (real estate) opened at 150 Worth
Ave. Herve Leger relocated from 206 Worth Ave. to 237
Worth Ave. Omega Watches opened at 226 Worth Ave.
The Juicy Couture store at 225-A Worth Ave. is converting
to a Kate Spade store, as part of nationwide brand
reshuffling by Kate Spade’s parent company. Designer
jewelry retailer A.R.T. relocated from 249 Worth Ave. to
235 Worth Ave. French fashion boutiques Sandro and
Maje opened at 247 and 249 Worth Ave., respectively,
and Italian clothier Brioni opened at 251 Worth Ave.
New England fashion retailer Vineyard Vines opened at
305 Worth Ave. Italian linen fashion retailer 120% Lino
opened a second Worth Avenue location at 333 Worth
Ave.
Demographics
Worth Avenue, located on the island of Town of Palm
Beach, technically falls in the West Palm Beach
submarket, the same as Clematis Street. However, its
high-end merchants target its immediate trade area on
the island itself, as well as high-income visitors from
outside. Population on the island in 2014 is 8,263, with
a median age of 68. Average household income in the
Town of Palm Beach is $143,919. The population is 4%
Hispanic and less than 1% African American. Daytime
population is 11,712. Population on the island decreased
1% between 2010 and 2014, but it is projected to have a
slight increase, 0.5%, in the next five years.
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EAST ATLANTIC AVENUE
modern comeback of downtown delray beach builds
momentum on east atlantic avenue
40
TERRANOVA
Retail Report
East Atlantic Avenue is a new entry in this year’s report, due to the appeal and momentum it
has gained as part of the modern comeback of downtown Delray Beach. Lined with trendy restaurants, galleries, cafes and fashion stores, Atlantic continues to raise its profile. National
retailers Urban Outfitters and BCBG this year opened locations on Atlantic, as did one of
South Florida’s favorite chains, Rocco’s Tacos. A new iPic movie theater is proposed one block
south of Atlantic. The eastern bookend of this strip is the beach, and with a low vacancy rate
of just over 1%, it’s not surprising a project is proposed to redevelop two blocks into a new
mixed-use complex.
Proposed Projects
Atlantic Crossings, a mixed-use project that will
include 75,633 square feet of stores and restaurants,
is proposed on a four-block site on the NEC of E.
Atlantic Ave. and NE Sixth Ave., stretching east to the
Intracoastal. Plans call for demolition of all existing
buildings and phased construction of a six-building
complex that will include 343 residential units. Atlantic
Plaza Shopping Center at 777 E. Atlantic Ave. is within
the redevelopment site.
Tenant Moves
Urban Outfitters will open a two-level store at 306 E.
Atlantic Ave. Fashion retailer Fresh Produce opened
at 401 E. Atlantic Ave., in suite 101, next to a new
store from BCBGMaxAria, in suite 102. Also newly
opened at this building is Haystacks, a small chain of
hand-designed fashions hailing from Michigan. Smoke
BBQ opened at 8 E. Atlantic Ave. Honey Delray, a
new nightclub concept by the owners of former tenant
Delux, is opening at 16 E. Atlantic Ave. Rocco’s Tacos
will replace Prime Steakhouse at 110 E. Atlantic Ave.
Gary Rack’s Fat Rooster Restaurant will open at
200 E. Atlantic Ave. Taverna Opa opened at 270 E.
Atlantic Ave. Muffin Tin will replace Nutrition Cottage
Health Foods at 407 E. Atlantic Ave. Fashion retailer
Morley replaced Forms Gallery at 415 E. Atlantic Ave.
Primo Shoes will open at 526 E. Atlantic Ave. Fashion
retailer Ramona LaRue opened at 530 E. Atlantic Ave.
Honoww Hot Dog will replace The Shack at 632 E.
Atlantic Ave. Consignment store A Blast from the Past
relocated from 640 E. Atlantic Ave. to 777 Atlantic Ave.
Men’s fashion retailer Swatches & Rags will open at
900 E. Atlantic Ave., which also added Beachcomber
Art. Art Sea Living replaced The Ancient Olive at 514
E. Atlantic. Extreme Art replaced DaVinci Fine Art &
Antiques at 516 E. Atlantic.
Demographics
East Atlantic Avenue is in the Delray Beach/Boynton
Beach submarket. This area has an estimated 2014
population of 272,229, and is projected to grow 6%
in the next five years. The population is 19% African
American and 11% Hispanic. Median age is 53, the
oldest of all submarkets, and average household
income is $64,401, lower than $65,772 a year before.
Daytime population is 68,073. Population in this
submarket has grown 5% since 2010.
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44
TERRANOVA
Terranova founder and
chairman, Stephen Bittel,
is not only known for
his proWESS in the South
Florida real estate market,
but also for his impeccable
knowledge in South Florida
cuisine. Our very own
foodie-in-residence, Bittel
takes us on a journey
through Miami, stopping
at some of his favorite
lesser known spots. Some
restaurants hidden in dimly lit strip centers, others off
the beaten track. But these ten gems do more than just
satisfy your hunger, they will delight your taste buds
with unique and mouth-watering flavors.
I r o n s i d e P i z za
Ca pta i n J im' s S ea fo o d M a r k et
Hidden is an understatement for this secluded gem
off the Biscayne Corridor. Surrounded mostly by
warehouses and commercial properties on railroad
tracks, Ironside Pizza is well worth the search. TD
Hospitality Group, who first opened Toscana Divino in
Mary Brickell Village in 2012, branched out to the Little
River District’s Ironside Complex and acquired this
Neapolitan pizzeria. This secret spot keeps it simple
and tasty offering wood fired oven pizzas from the
classic Margherita with San Marciano tomato sauce,
mozzarella fiordilatte and fresh basil to the decadent
Funghi with porcini mushrooms and black olives. The
small but cozy restuarant also offers gluten free and
vegan options for its delectable menu.
Who would have thought to look in North Miami for
fresh fish and seafood? If you didn’t, then you wouldn’t
know about Captain Jim’s and his fleet of fishing boats
bringing in some of the freshest fish at affordable
prices to Miami. Pick out fresh fish at the counter to
take home or have Captain Jim’s staff fry, grill, broil,
or blacken it for you. Don’t be fooled by appearances
and step into Captain Jim’s for friendly service and
deliciously fresh seafood.
75 8 0 NE 4t h C o u rt , M i a m i
1 2 9 5 0 W D i x i e H wy, N o rt h M i a m i
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45
shb's top
ten gems
M C Ki tch e n
41 41 NE 2 n d Av en u e , S u i t e 1 0 1 A
D e s i g n D i s t r i ct
Hailing from Aspen, Colorado, chef and co-Owner
Dena Marino opened MC Kitchen in the Design
District with Brandy Coletta in November of 2012.
Amid art galleries, fashion boutiques and other
trendy restaurants, MC Kitchen draws crowds by
serving modern, Italian, organic food. The welcoming
light-filled space combined with the rustic flavors of
Marino’s farm-to-table cuisine creates a multi-sensory
dining experience. Creating great food and providing
excellent service is the reason why this hidden gem
made our list.
C h o ic e ' s Ca f E
64 6 n e 7 9 t h s t r ee t , m i a m i
This family run enterprise was founded by brothers
Alex and Jorge Cuevas, to serve delicious healthy
food, to promote sound plant-based diets, and to
engender sustainable practices. With strong Latin
flavors, Choice’s creates a lasting impact on guests
with fusion versions of American staples like burgers,
pizza, sandwiches and salads to exotic offerings
such as Nori seaweed wraps. Choice’s Café serves
mouthwatering vegetarian cuisines that keep even
their meat-eating customers coming back for more.
American tavern. Partners Aniece Meinhold and
Caesar Zapata recently celebrated their third year in
business this past January and attribute their staying
power to its ever-changing seasonal menu that keeps
customers coming back for more. Look for their Phuc
Yeah pop-up to soon re-open close by.
Th e F e d e r a l
M ich a el 's G en u i n e Fo o d & D r i n k
Celebrating American comfort food with a modern
twist, The Federal can be found along Biscayne
Boulevard just north of Downtown Miami in a
dimly light strip mall. But don’t let
the outside appearance of
this hidden gem deter
you from enjoying
the modern
Michael's Genuine is defined as truly what something
is said to be, and this farm to kitchen eatery in the
Design District lives by this definition by showing its
passion for food. Showcasing James Beard Awardwinning chef/owner Michael Schwartz, Michael’s
Genuine changes its menu daily by sourcing seasonal
ingredients from local growers and small farmers.
Choose from small, medium, large or extra-large
plates to satisfy your taste buds. Enjoy the tropical
foliage while sitting at a table in the courtyard of this
remarkable restaurant.
5 1 32 B i s cay n e B o u le va r d , B I S CAY NE C ORR I DOR
1 3 0 NE 4 0 t h St r eet , D es i g n D i st r i c t
Kh o n g Ri v er H o u s e
1 6 61 M er i d i a n Av en u e, M i a m i B e ac h
Steps away from the hustle and
bustle of Lincoln Road, Khong
River House serves up
innovative Southeast
Asian cuisine
by staying
true to
46
TERRANOVA
shb's top
ten gems
the Mekong region with its tribute to food, flavors
and Asian traditions. John Kunkel, owner of other
great Miami eats like Swine Southern Table & Bar
and Yardbird, opened Khong River House in 2012
after spending close to three years living in parts of
Thailand. His experience there is reflected not only
in the cuisine, but in the Thai inspired interior of the
restaurant where Thai fish traps serve as light fixtures
and walls are made of crates and pallets shipped from
Thailand. Stop by for a true taste of Asian culture and
cuisine.
P r o o f P i z z a & Pas ta
3328 N M i a m i Av en u e , M I DTO W N
Proof Pizza & Pasta quietly opened in October 2014 in
Midtown, but they could not keep their Neapolitan style
pizza and fresh homemade pasta a secret. Owners,
Justin Flit and Matt DePante opened Proof Pizza &
Pasta after meeting at the French Culinary Institute in
New York City and working in the kitchens of DBGB
and Miami favorites, The Dutch and Bourbon Steak.
Proof offers Italian classics like margherita pizza and
gemelli beef bolognese to unique plates like the oxtail
pizza with black garlic, thyme and caramelized onions.
This fresh spin on a neighborhood pizza joint makes
our list of hidden gems for its high quality and farm
fresh ingredients.
B la c k b r ic k C hi n e s e
with Blackbrick. Opening in 2013, Blackbrick serves
up thoughtful spins on classic take-out flavors like
General Tso-style Florida alligator and Kung pao
rabbit. If you can’t take the heat of Hales use of
Szechuan peppers, then wash it all down with a
whiskey cocktail, local craft beer, or wine which all
work well to subdue the scorching heat.
S u s hi Sa mba
6 0 0 Li n c o ln Ro a d , M i a m i B ea c h
1 8 0 A r a g o n Av en u e, C o r a l G a b les
Sushi Samba provides a unique blend of Brazilian,
Peruvian and Japanese cuisine and entertainment.
First opening its doors in 1999 in New York City, Sushi
Samba has grown to be an international success story
with restaurants in Hong Kong, Dubai, the Bahamas,
London, and Mexico City while Miami is lucky enough
to have two locations, Coral Gables and Lincoln
Road. Sushi Samba’s signature samba rolls build on
traditional sushi by adding tropical fruits and spices to
give it their unique Peruvian and Brazilian influence. In
addition to their world-renowned sushi, Sushi Samba
is known for their signature cocktails including classics
like the Mojito to exotic spirits like pisco and shochu,
not to mention their extensive collection of sake, one
of the largest premium sake collections in Florida. The
restaurants unique craft, as well as their dedication to
presentation, are just a few reasons why they remain
one of the top sushi restaurants in the world.
34 5 1 NE 1 s t Av en u e , M i d t o w n
Just a short walk from his first restaurant Sakaya
Kitchen, Chris Hales is tackling Chinese cuisine
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PRIME RETAIL DESTINA
terranova corporation | 801 W. 41st street, suite 600, miami beach, fl 33140 |
COCONUT GROVE, FL
MIAMI BEACH, FL
MIAMI LAKES, FL
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TERRANOVA LEA
minDY mcilroY 305.779.8970
[email protected]
Juan franco 305.779.8938
[email protected]
anDrei pintilie 305.779.8903
[email protected]
AVENTURA, FL
DOWNTOWN MIAMI, FL
48
TERRANOVA
TENANT REPR
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305.695.8700 | [email protected] | WWW.terranovacorp.com |
@terranovacorp
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ASING CONTACTS
inDia turKell 305.779.8908
[email protected]
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[email protected]
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[email protected]
RESENTATION
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PINECREST, FL