New Retail Center at 5th Street and Alton Rd
The following content comes from the South-of-Fifth Neighbors Association. This is an organization made up of condo owners from this part of South Beach.
Earlier today, Gerald Posner, SOFNA President, his wife Trisha, Bryant Kirkland, SOFNA’s Treasurer, and Miami Beach Commissioner Michael Gongora, met with Jeff and Michael Berkowitz, the President and Vice-President of the development company for the 185,000 square foot vertical retail complex planned for 5th and Alton. Also present, for the two-hour meeting, was Wayne Pathman, the Berkowtiz’s attorney.
The Miami Beach Design Review Board and the Historic Preservation Board approved the Fifth and Alton project, after extensive hearings, in August 2004, long before SOFNA existed. The artwork, to be done by Romero Britto, was also approved after several Art in Public Places committee hearings.
As a result, the 5th and Alton project is proceeding. Ground was broken in June without having to consult with SOFNA. But at our request, and that of Commissioner Gongora, the Berkowitzs were more than willing to meet.
Many of you had expressed concerns about the quality of the retail tenants, especially since this imposing complex would be the first site greeting every visitor to South Beach.
The city gave the green light to the project with the requirement that a needed neighborhood grocery store be built. The Berkowitzs tried to land Whole Foods, who passed in favor of downtown Miami. Publix will now take the entire ground floor. Small retail shops at the street level will also include a cellular company, Panera bread, and others to still be determined.
There is space for approximately 1,000 parking spaces (the city actually paid over $500,000 for the extra parking, in the hope it would relieve parking congestion on Ocean and Washington for weekend beach visitors).
The area of our focus, however, were the third and fourth floors, where there are spaces for 4 big box stores. The Berkowitzs methodically, and convincingly, showed us that for several years, they tried to attract premier retail tenants. Owning other such complexes (such as Dadeland) they know the decision makers at each of the major retailers. And it was to their benefit to have the very best names, since it only added allure to the project.
Barnes & Noble was heavily courted, but passed every time, including recently. If they ever open on the Beach, it will be Lincoln (despite 5th and AltonÕs rents being substantially less than Lincoln). Borders Books said no. As did Crate & Barrel, The Container Store, CB2, Abercrombie and Fitch, and all of the department stores. On the clothing front, Zara has already opened on Collins at Fifth. The Berkowitzs made a special presentation to the hip, young clothing retailer, H&M, which has been looking for a Beach location. They offered them the corner space, where their logo would greet everybody coming into South Beach. H&M instead wants Lincoln. Even Sports Authority passed. As did Bed Bath & Beyond and
Linens and Things. Target and West Elm were persistently courted, but both decided instead to open in Midtown.
Most of these national retailers stubbornly believe that South BeachÕs demographics include too many part time owners and that tourists wonÕt use 5th and Alton as a shopping center. They want a location with substantial foot traffic. SOFNA, Commissioner Gongora, and the Berkowitzs are convinced the retailers are wrong, but cannot convince them otherwise.
As of this time, although all the contracts have not been finalized, the third floor will include a large Best Buy, and a smaller Staples, and the fourth floor will have a large Ross Dress for Less, and a smaller TJ Max. Sure, all of us South of Fifth would prefer a Barnes & Noble and a Container Store, but, unfortunately, it is almost certain not to happen.
The Berkowtizs agreed to keep us informed of retail developments, and they are willing to meet again. If we bring them a higher quality tenant, they are more than willing to welcome them into the complex.
Commissioner Gongora generously spent nearly another two hours talking to the SOFNA reps. As he emphasized, only by being involved early in the approval process, could we have ever had an effect on the outcome. Since SOFNA’s formation this spring, we have done precisely that on a broad range of projects planned for our neighborhood. And we
will continue to do so. In the case of 5th & Alton, all we can do at this stage is to ask for what we want, but we have no way of forcing the issue. And realistically, from what we learned today, the developer tried, but failed, to accomplish the very same thing we wanted.
Gerald Posner, on behalf of the SOFNA Board of Directors