Sunny Isles Beach, Florida 33160
Authors: Richard Westlund and Mott Kornicki
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In the ancient world, architecture reflected a nation's culture. Think of Egypt with its pyramids. Athens and the Parthenon, and Rome's monumental Coliseum. Today, Sunny Isles Beach is making its bid for a place in history with a glamorous row of soaring oceanfront towers.
Taking advantage of one of the last available strands of beachfront in South Florida, well-known developers are building "castles in the sky"--luxurious residential condominiums and hotel suites--far above the Atlantic surf. In a frenzy of new construction, more than a dozen towers are now rising in this fast-changing Northeast Miami-Dade community, sandwiched between Haulover Park to the south and the ultra-wealthy single-family-home enclave of Golden Beach to the north.
"The location is really spectacular," New York real estate mogul Donald J. Trump told South Florida CEO. Known for his recent TV role on "The Apprentice" and high-profile love life, as well as his successful Manhattan investments. Trump--in partnership with the New York-cum-South Florida real estate Dezer family--is among the developers who are pouring hundreds of millions of dollars into Sunny Isles Beach. "I have always loved the location." Trump said. "and over the past few years it's become the hottest place in Florida."
One reason developers have become so fond of the city is that their oceanfront buildings can rise up to 55 stories, higher than anywhere else on the beach in South Florida. But their new towers also need to be relatively thin, providing views of the ocean and beach access for community residents. It's an approach that worked well in Cancun, Mexico, where modern mega resorts are separated by stretches of sandy beach.
"Our philosophy has been to build tall and skinny buildings with wide view corridors," says Sunny Isles Beach Mayor Norman S. Edelcup, who succeeded the city's late founding mayor, David Samson, last October. "We believe this approach is better than having short and squat buildings that block the ocean views. It allows us to accommodate developers, while making our city pleasant for residents. That approach is working well for us."
Few people have done more to carry out the city's vision than architects Charles Sieger and Kobi Karp. Sieger, a principal in South Miami-based Sieger Suarez Architectural Partnership, designed some of the earliest towers, including the Pinnacle and Ocean I, II and III, as well as several now under construction, including Ocean IV and Sayan.
"Every one of these projects are different, reflecting the developer's preferences, our creative ideas, and the constant changes in the marketplace," says Sieger, who assisted the city in rewriting its zoning codes to encourage the taller, skinnier building concept. "That creates a more interesting skyline and allows more light and air down on the street level," he says. "Sunny Isles is in the forefront of the nation in writing zoning codes that promulgate high-rises in an acceptable urban fashion. The result for the city is an attractive urban fabric along the edge of the ocean."
Karp, president of Kobi Karp Architecture and Interior Design (KKAID) in Sunny Isles Beach, has designed half a dozen of the new residential and hotel towers for various developers. "What we strive to do is create unique individual buildings with their own character and personalities," he says. "Like people, buildings have to relate to their environment and their surroundings."
Karp is a strong proponent of the city's tall, fluted approach to new development. Among the new wave of buildings he has designed are La Perla, the M Resort Residences and Jade. "Wouldn't you rather be 6-foot-4 and weigh 200 pounds than to be 5-foot-9 with the same weight?" he says. "The tall, thinner designs allow for more open space and more green space between buildings, which is critical because of the community's relationship with the water. It is more costly for the developer to construct a skinny building, but the extra height provides some compensation."
A CHANGING LANDSCAPE
Back in the 1980s, a trip to Sunny Isles Beach was like a journey to the past. A string of colorful, but decaying hotels from the 1950s and 1960s lined the oceanfront. Along "motel row." properties like the Castaways. Thunderbird, Marco Polo and Sahara offered whimsical design twists to passing motorists (you can still see the camels in front of the Sahara) and bargain-priced rooms inside.
At one point the row of hotels were considered quite glamorous, so much so that they were featured in the Frank Sinatra movie "Hole in the Head," when old blue eyes takes his date out for a night on the town in Miami. But in recent years, most visitors were middle-class families, flying in from Canada or driving here for a Miami beach vacation that might cost a mere $39 or $49 a night. If the service was erratic or the elevators malfunctioned, at least they could get a cool tropical drink at the bar for a buck or two.
Sunny Isles Beach hoteliers also began to cultivate the European market, according to Bill Lone, owner of the Lone Group Advertising firm, who serves as executive director of the Sunny Isles Beach Resort Association. "They were able to offer preferred rates to visitors from Europe who typically stayed a fortnight [two weeks]," he says.
That European exposure helped attract a German investment firm, which purchased the Castaways in the mid 1980s, demolished the signature, sprawling low-rise hotel, and began building Oceania, a luxury high-rise residential development that now consists of five residential towers. A few years later, condominium converter Crescent Heights renovated the 500-room Marco Polo, successfully selling units for $39,900 a piece to local residents and out-of-towners seeking a weekend getaway property.
Another mid-1990s pioneer was Jose Milton, whose company, J. Milton&Associates, developed the oceanfront towers Sands Pointe and Pinnacle, as well as the Intracoastal Yacht Club, a high-end waterfront rental complex on the west side of the community. Lone credits Milton with being a "spark" that helped ignite interest in the community. "At that time, the banks were not attentive to Sunny Isles Beach," he says. "Sands Pointe was an immediate success, and then the Pinnacle made a clear design statement to the market. After that, developers began saying. 'Can you top this one?' and that type of competition has been good for the community."
The transformation of Sunny Isles Beach began to pick up speed after the city incorporated in 1997. One of the first projects was Millennium, a 33-story joint venture between two Venezuelan-owned companies that sold almost half of its 117 residences to Latin Americans.
Suddenly, the stars over Sunny Isles Beach came into alignment and the race was on to create a new city of towers. Among the reasons for the boom:
* Natural assets. Although the city's total area is just 1.0 square miles, it has two miles of beaches on the Atlantic Ocean.
* Rising land values. With land in South Beach exorbitantly priced, developers could purchase oceanfront land in Sunny Isles Beach, afford to tear down existing structures, and still reap significant profits.
* Height liberalization. When prices rose, so did permissible heights. As real estate attorney Clifford A. Schulman, a shareholder at Greenberg Traurig, P.A., points out. "The land in Sunny Isles Beach is more valuable to developers because you can build high-rises."
* A pro-development civic environment. Once Sunny Isles Beach incorporated, city officials could implement their vision of creating a modern, affluent community dominated by tall, high-end residential towers.
* A central location. Halfway between South Florida's two biggest cities. Sunny Isles Beach attracts air travelers from both Miami and Fort Lauderdale international airports.
* The near build-out of Aventura. Developers who had invested in Aventura's Intracoastal condominium towers found it a natural move to head east across the William Lehman Causeway and continue building in Sunny Isles Beach.
* Continued promotion and behind-the-scenes marketing. Major US developers became more comfortable with the idea of investing in an up-and-coming community.
* Community investment in infrastructure. City and state dollars went into renourishing the Atlantic beach, refurbishing Collins Avenue and building new side-walks, water and sewer lines.
Since becoming a city in 1997. Sunny Isles Beach's tax base has risen along with its higher skyline. From approximately $1.1 billion six years ago, the city's tax base hit $2.7 billion in 2003, on its way to a projected $5 billion before the end of the decade.
The population of Sunny Isles Beach has also climbed quickly, from less than 15,000 at the time of incorporation to an estimated 17,000 today. Residential developers have built 3.277 new units in the past five years, with another 3,012 units proposed or under construction. Not bad for such a small, narrow coastal community.
"By incorporating as a city, Sunny Isles Beach achieved self rule, and was able to bring the benefits of its new growth to its residents," says Lone. Among the benefits of the additional tax revenue: free shuttle bus service for residents, a growing collection of city parks, and a new four-story City Hall slated for completion later this year.
The city's award-winning police force has also made a name for itself, significantly reducing the city's crime rate. "We have a dedicated local police force that is resident and tourist friendly, and focuses on crime prevention," Lone says. "Today, we are virtually a crime-free community."
PLAYING THE 'TRUMP' CARD
Undoubtedly the biggest investor in the new Sunny Isles Beach is the Dezer organization, led by the father-son team of Michael and Gil Dezer. Through their own purchases of existing hotels, investments in new high-rise developments, and partnerships with Donald Trump and Jorge Perez' Related Group of Florida, the Dezers have pumped more than $300 million to date in Sunny Isles Beach.
"Day by day we see the changes taking place," says Gil Dezer, president of Trump Dezer Development. "It's amazing how quickly you can see the whole skyline changing. The city had a great vision and it's coming to be a beautiful place to live."
Last year, the Dezers teamed with The Related Group in a 50-50 partnership to build Ocean IV, a luxury condominium to the south of the Related Group's sold-out Ocean I, II and III towers. Sales at Ocean IV are going strong, with construction due to start later this summer.
"Ocean IV is the most successful building we've done in Sunny Isles Beach," says Tom Daly, a developer who partnered with the The Related Group on Ocean I, II, III and IV. "We sold 271 units in four weeks and have only a few remaining." Condos at Ocean IV are priced from $400,000 to $2 milion.
An even larger-scale collaboration is underway between the Dezers and Donald Trump. When completed, their Trump Grande Ocean Resort and Residences will encompass three buildings. They are: Trump International Sonesta Beach Resort, a completed 372-unit condominium hotel; Trump Palace, a 278-unit, 55-story condominium tower now under construction with scheduled completion in mid 2005; and Trump Royale, a 333-unit, 55-story condominium tower scheduled for completion in December 2006. Trump Royale appears to be set for completion winter 2008!
"We're doing well with these buildings, and Donald Trump has helped us immensely," says Dezer. "We're already sold out at Trump Palace and are 85 percent sold at Trump Royale, which is due to break ground this summer." Prices for the three Trump towers range upward from the $600,000s, with penthouses going for between $1.5 million and $25 million.
As Donald Trump said when he announced the joint project. "I believe this is an amazing tract of beachfront property with phenomenal potential. It is the equivalent of owning everything on Fifth Avenue from 52nd to 57th Street. With virtually no remaining prime oceanfront property in Florida, there is no doubt that this project is going to be a great success."
MOVING EAST FROM AVENTURA
When noted Williams Island developer Jules Trump announced his plans for Acqualina several years ago, South Florida's real estate world held its collective breath. Would an ultra-luxurious development, whose castles in the sky cost well over $1 million each, succeed in a "transitioning" neighborhood like Sunny Isles Beach?
The answer was clearly yes. "We are sold out and expect to start closings this fall," says Michael Goldstein, president of sales. "The values at Acqualina have already gone up, now that people see the quality here." Acqualina's buyers include Chicago Cubs star Sammy Sosa, who purchased an 11,500-square-foot penthouse. The saga continues as to the dispositiotion of Sammy Sosa's penthouse ownership.
Jules Trump, a partner in The Trump Group--and no relation to Donald Trump--sees Acqualina, as setting the tone for the revitalized city. "Sunny Isles Beach is becoming a very cosmopolitan community with an outstanding quality of life," he says. "It's accessible to great shopping and restaurants, and it has very good city government."
Another developer who crossed the causeway from Aventura is Turnberry Associates. Known for its legendary Turnberry Isle Resort and Golf Club in Aventura--as well as Turnberry Place, its new Las Vegas project--the long-time South Florida developer is now building Turnberry Ocean Colony. "Aventura has been a super success story for 15 years, but it doesn't have a beach," says Bruce Weiner, president, Turnberry Development. "The natural spillover from Aventura is Sunny Isles Beach. That's been a primary driving force for us." As for who the new residents are, says Weiner. "About 60 percent of our buyers will be primary residents who already live in South Florida. This will be home to them."
With two 37-story towers, each with 130 oceanfront units, and a luxurious resident-only beach club and spa. Turnberry Ocean Colony's residences average about $1.5 million. Construction began in January on the first tower and beach club, with sales on the second tower set to begin this summer.
A HOST OF HIGH-RISES
Referring to Sands Pointe and Pinnacle, Yosi Gil, partner with J. Milton & Associates says, "Our first developments helped put Sunny Isles on the map." Today, the developer is continuing its string of successful projects with Sayan on the beachfront and King David on the Intracoastal.
The latest of the company's oceanfront towers, Sayan is "luxury to the extreme with an oriental style," says Gil. "Our boutique-style setting still offers the same upscale indulgences as neighboring buildings, but with a more personal, privileged feel." All 90 units in the 30-story tower have been sold at prices starting around $500,000. Ground breaking is expected in June with a 15-month timeline for completing construction.
A few blocks to the west, King David is 90 percent sold, according to Gil, with remaining units priced from $285,000 to $475,000. After that, J. Milton & Associates plans to build another five to six towers in the city.
Just north of Sayan, near the historic Newport Pier, is La Perla, a 42-story oceanfront development by Cornerstone Premier Communities. The 316 two- and three-bedroom residences at La Perla are priced from the $300,000s. Cornerstone president Richard Lamondin says construction began in April with completion scheduled for mid 2006. "La Perla is 100 percent sold, and we're now under construction. We have a lot of local residents buying units as a place they can retreat to on weekends. Like everyone else, we've seen a lot of international interest, from Europe, Mexico and Latin America."
Further north, New York-based Wave-Stone Properties and The Helix Group are making their joint debut in Sunny Isles Beach with Sole, a boutique resort designed to capture buyers looking for "urban chic." Thomas Feeley, founder and principal of WaveStone Properties, says, "With our first entry into the market, we wanted to bring something different. Sole offers a casual, cutting-edge beachfront lifestyle." Sole will have 147 one- and two-bedroom units, priced from $280,000 to $850,000. WaveStone broke ground on Sole in April, and is currently in negotiations with several high-end boutique hotel operators. Sonesta will be operating the Sole, as of December 2008.
Another planned tower is The Sea, a 45-story building with 238 units by Sunny Isles Development LLC. "We have submitted our request for site plan approval, and are already doing extremely well in presales," says vice president Isaac Kodsi, whose father Joseph Kodsi is the developer. With units priced from $800,000 to $2 million, The Sea will offer the same level of luxury as a more expensive building, while maintaining a more uniform pricing level, Kodsi says. As of November 2008, there is no sign that The Sea will come into being.
Fortune International, led by Edgardo Defortuna, is making its second major investment in Sunny Isles Beach with Jade Beach, a 55-story luxury tower with 248 units. After recently receiving site plan approval from the city, Fortune launched its sales campaign with residences priced from the $400,000s to more than $6.5 million. Fortune also purchased an oceanfront site just to the north of Jade Beach and is starting the planning process for another luxury tower.
"We feel there is so little beachfront land left in South Florida, that being able to get 300 or 600 feet on the site [when counting the second building] makes us extremely bullish on the location," says Edgardo Defortuna, president. "Even if interest rates rise, we feel the Sunny Isles Beach market is very safe, because people from around the world will continue to want to be on the beach."
HIGH-END RESORT DEVELOPMENT
Not all the new high-rise development in Sunny Isles Beach is strictly residential. Several new luxury projects have adopted the condominium hotel concept, where buyers purchase suites that can be rented out by a hospitality management company. Other residential projects incorporate an upscale hotel operation within the development.
For instance, Sonesta was the hotel operator at Trump International Sonesta Beach Resort, and Rosewood Hotels&Resorts did manage the boutique hotel at Aqualina. For unit owners, having a hotel onsite means access to more personal services--think concierge, housekeeping and room service--as well as resort facilities like a fitness center, spa or multi-purpose pool deck.
From a design standpoint, architect Karp says he takes a different approach to resort-oriented developments compared with strictly residential projects. "In a resort, we want the units to feel like a four-star hotel on the ocean with substantial amenities throughout the property," he says. "This is usually above and beyond what a lifestyle condominium may wish to offer."
The new wave of developers in Sunny Isles Beach has been largely successful in attracting top resort companies to its projects. Fortune International, for instance, recently signed London-based Le Meridian to operate the hotel component at its first Sunny Isles development, M Resort Residences, a condominium hotel with units priced from the $300,000's to more than $800,000. In fact, Fortune plans to change the name of the European style property to Le Meridien Sunny Isles Beach Resort when the 210-unit development is completed by December. Le Meridien will also include the newest location of the elegant Bice restaurant, with indoor-outdoor dining for 250 people.
Hilton is entering the Sunny Isles Beach market with Fantasy of the Ocean, a 21-story full-service condo-hotel by Argentine developer Enrique Soltanik's company, DSP Developments. Fantasy of the Ocean will operate as a Hilton hotel, with 198 hotel suites that are being sold fully furnished from $345,000 to $645,000. "Sunny Isles has great potential and this project poses a sensible growth opportunity for us, so we are very pleased to be here," says Mike Williams. Hilton regional marketing director. Fantasy on the Ocean was canned and Solis beach will eventually take its place.
Lone notes that the arrival of all these high-quality "flags" (hotel operators) signals the arrival of Sunny Isles Beach as a luxury resort destination. "It's a really dramatic turnaround," he says. A decade ago, Sunny Isles Beach had about 41 lodging properties with a total of 5,100 rooms. With the volume of redevelopment, that number fell to about 2,500 rooms, but is already rebounding. "We expect to wind up with about 4,000 rooms in just 14 properties," Lone says. "What's most important is the way these higher-end properties will enhance the city's economy."
CONTINUING THE EVOLUTION
With more than a dozen new towers planned or under construction, Sunny Isles Beach may be reaching its peak in terms of the volume of new development. "Most of the properties on the ocean that were under single ownership have been purchased for development as high-rise condominiums," says Schulman, who has advised several major developers over the years. "Now, there is a significant movement to buy up units from older properties under condominium ownership and convert them to high-rise projects."
That condo unit buy-out process may take several years. But after the last of the older properties are purchased and demolished, the era of new development on the oceanfront strip will come to an end.
Nevertheless, Sunny Isles Beach plans to continue its redevelopment momentum by revitalizing its low-rise retail centers west of Collins Avenue and creating a new mixed-use town center concept along Sunny Isles Boulevard (163rd Street) that would be modeled after Boca Raton's Mizner Park. "One of our top priorities is the new zoning for the town center to encourage a redevelopment of that area," says Edelcup. "We see this as a mix of retail, office and residential space with an open pedestrian plaza."
To the north, the city's new zoning ordinance allows heights of four to 19 stories along the inland side of Collins Avenue--a step designed to create higher density retail, restaurant and residential uses across the street from the oceanfront towers. "The new residents and visitors coming into Sunny Isles Beach would be able to walk across Collins Avenue and find shops that enhance that high-end lifestyle," says Lone.
However, when it comes to attracting national retailers. Sunny Isles Beach has a disadvantage. It lies midway between the Shops of Bal Harbour and the Aventura Mall, both long-standing high-end shopping destinations. "We think there's potential for a lifestyle-retail development," says Weiner, whose company owns Aventura Mall. "[But] it will be hard to get major tenants to come to a site between the two regional centers."
On the residential side, more redevelopment may also occur along the Intracoastal Waterway, where zoning allows residential condos up to 15 stories high. "A lot of condo buyers actually prefer the Intracoastal side because there's more activity below them, and more things to see from their balconies at night," notes Schulman.
Meanwhile, the city's single-family homes and condominiums continue to increase in value, despite the volume of new construction, according to Armando Diaz, president of Oceanview International Realty. "We have seasonal buyers coming here from the Northeast, and the Latin American countries," says Diaz. "There are also a large volume of Russians buying here, and three of our agents at our Sunny Isles Beach office have Russian backgrounds."
Perhaps the biggest challenge for Sunny Isles Beach will be retaining its existing population base--mostly retirees with a large Jewish contingent--while becoming a younger, more affluent city. It means keeping Wolfie Cohen's Rascal House as the traditional heart of the community, while building new parks and a school to accommodate the fast-growing number of children.
But no one benefits more from the city's growth than potential residents, according to Edelcup. Not only will the city have greater revenue to provide services, but the new condominium towers, resorts and restaurants add a new dimension to the city's quality of life. Reflecting on the city's future, he says, "I believe we will have the crown jewel in South Florida when we are finished."
RELATED ARTICLE: PLANS FOR THE FUTURE
WITH MOST OF THE BEACHFRONT SPOKEN FOR, THE NEXT AREA FOR RADICAL CHANGE IS 163RD STREET
The extraordinary transformation of Sunny Isles Beach has mostly taken place along the ocean. But the "gateway" to the city from the mainland is the 163rd Street corridor, also known as Sunny Isles Boulevard, now a collection of mostly rundown retail storefronts. Plans by the city include creating a mixed-use town center that would be modeled after Mizner Park in Boca Raton. The center would include retail, office and residential space, with an open pedestrian plaza. Dollars for the ambitious project will be drawn from the city's enormous new tax base created by the high-rises.
RELATED ARTICLE: RETAIL, RETAIL
WITH ITS TRANSFORMED OCEANFRONT, SUNNY ISLES' NEXT CHALLENGE IS TO UPGRADE, RETAIL
Located halfway between the Shops of Bal Harbour and the Aventura Mall, both long-standing high-end shopping destinations, Sunny Isles Beach has been at a disadvantage when it comes to attracting national retailers. New zoning ordinances have been designed to allow heights of four to 19 stories along he inland-side of Collins Avenue (right), to create higher density retail, restaurant and residential uses. The idea is to allow the new high-rise residents to walk across the street and find shops that "enhance the high-end lifestyle," says civic leader Bill Lone.
RELATED ARTICLE: A CHANGING DEMOGRAPHIC
LONG THE LAND OF RETIREES AND MOTEL CUSTOMERS, SUNNY ISLES IS UNDERGOING A RADICAL CHANGE IN ITS POPULATION
One of the big challenges for Sunny Isles Beach will be retaining its existing population base--mostly retirees, with a large Jewish contingent--while becoming a younger, more affluent city. It means keeping Wolfie Cohen's Rascal House restaurant, while building new parks and a school to accommodate the fast-growing number of children. Overall the population has grown from around 15,000 in 2000 to about 17,000 today; in particular, the number of school-age children has grown from around 400 to more than 1,500. This will require a K-8 public or charter school by 2006 or 2007. The city is also planning a new park with an enclosed gymnasium, basketball court and rooms for arts and crafts. Overall, the population is a unique ethnic mix, with 10 percent of Russian background, 6 percent Italian and 5 percent Polish.
RELATED ARTICLE: SUNNY ISLES BEACH: THE FACTS
Population: 15,315 (year 2000); 17,000 (2004 estimate)
Males: 7,093 (46.3%), Females: 8,222 (53.7%)
* White Non-Hispanic (58.8%)
* Hispanic (36.6%)
* Other race (2.3%)
* Two or more races (2.3%)
* Black (2.0%)
(Total greater than 100% because Hispanics counted in other races)
Land area: 1.0 square miles
Zip code: 33160
Median resident age: 50.4 years
Median household income: $31,627 (year 2000)
Median house value: $298,400 (year 2000)
City website: www.sibfl.net
Factoid 1:
More than 250 Sunny Isles Beach residents are Holocaust survivors. They were honored recently at a city-supported event held at Temple B'nai Zion.
Factoid 2:
Sunny Isle Beach has one of the largest contingents of Russian residents of any South Florida community. In addition to visitors and part-time residents, nearly 10 percent of residents are of Russian background. Sunny Isles Beach also has a large contingent of Italians (almost 6 percent) and Poles (5 percent).
Sunny Isles Beach Tax Base
1997: $1.1 billion
2001: $1.6 billion
2002: $2.2 billion
2003: $2.7 billion
2008: $5.0 billion (projected)
Mott Marvin Kornicki, Associate/Realtor®
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