MIAMI—Just how hot is Lincoln Road retail? Well, here's one way to look at it: Stephen Bittel, chairman of Terranova Corp, is working on vertical expansion of properties on Lincoln Road to meet pent up demand.
“Lincoln Road is the premier retail street in the Southeast US, and demand for space is virtually popping the ceiling off the top of these historic structures, literally,” says Bittel. Terranova is working to redevelop its buildings into multi-story structures that will make room for anchor stores and activate streets next to Lincoln Road with new retail activity.
The 1654 building is among the structures that will undergo redevelopment. It sits on the hard corner of Meridian Avenue north of Lincoln Road. When the vertical expansion is complete, it will offer new storefronts that open to Lincoln Lane, activating that alleyway with new retail activity.
All told, the new 1654 building structure will offer over 23,000 square feet on three floors. That includes a 8,767-square-foot third floor space with an outdoor seating option overlooking Lincoln Road.
On 723 Lincoln Lane, a building just north of Lincoln Road and abutting Macy's on 17th Street, Terranova will build three new stories totaling close to 45,000 square feet. That will set the stage for an anchor store on the second and third floors and retail spaces ranging from 500 to 12,000 square on the ground floor.
Terranova's Mindy McIlroy is charged with selecting the best retailers for the new space. She is convinced the growth of the neighborhood into a world-class urban center demands the firm incorporate both commercial viability with the district's existing historic beauty and charm.
“Expanding our buildings and opening up retail toward Lincoln Lane is part of the ongoing urban growth in this neighborhood, while it allows us to accommodate larger-scale retailers that are currently shut out of Lincoln Road,” McIlroy says. “We plan to do it in a way that combines the best of retail with the best of architectural design.”
In addition to developing these multi-story projects, Terranova has also redesigned the nearby 719-737 Lincoln Road building with brand new awnings and tenant signage. That's expected to be completed in January 2015. Both Lincoln Lane projects have received approvals from the Miami Beach design board and are slated to break ground in 2015.
“The redevelopment of 1111 Lincoln Road was the key turning point,” Adam Lustig, a partner in Miami-based Bilzin Sumberg, tells GlobeSt.com. Our client, Robert Wennett, had an incredible vision to transform a 1960s Brutalist style concrete office building into a mixed-use project with high-end retail. At the time the Apple Store was the only store on Lincoln Road paying over $100 per square foot. 1111 Lincoln Road was able to command rents of $150 per square foot, which was unheard of in Miami at that time.
“The recent sale by Terranova and Acadia continued the trend of increasing property values and the influx of New York institutional investors buying on Lincoln Road,” he continues. “Property values are now in excess of $4,000 per square foot and will likely soon reach $5,000 per square foot.”
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