Thousands of new rental apartments in Miami Worldcenter to increase downtown housing
More high-rise living is coming to Miami Worldcenter, potentially bringing some relief to one of the most competitive rental markets in the United States.
Builder Lalezarian Properties gained approval last week from the city of Miami’s urban development review board for its design of three towers in the Miami Worldcenter, one of the country’s largest developments in an urban core.
The New York developer plans to add the 68-story, 67-story and 31-story high-rises on the corner of 20 NE 8th St. and 777 North Miami Ave., steps from MiamiCentral Brightline Station. The project would squeeze in a total of 2,040 apartment rentals into the booming area.
Although the board approved the plan, board members suggested some changes. Lalezarian is now pursuing a feasibility study for those recommendations, according to Andrew James, principal at the Coral Gables-based Nichols Architects.
Spanning 27 acres, Miami Worldcenter is the country’s second-largest urban development following New York’s Hudson Yards. Miami Worldcenter Associates launched the project in 2016 with the vision of replacing mostly empty surface parking lots across from the Kaseya Center with condominiums, apartment rental towers, hotels, and a now scrapped convention center. Developers from across the country have jumped in to build out different pockets within Miami Worldcenter.
“Major developers out there believe this demographic shift is going to continue in this number of years. They have to get these units in the ground, developed and closed. They believe this migration is going to continue for years to come,” said Ken H. Johnson, a finance professor specializing in real estate at Florida Atlantic University. “It’s not just people. Money is coming as well.”
Despite South Florida experiencing a population loss during the pandemic, Florida as a whole became one of the fastest growing states in the country. Remote workers and executives chose to call the state ‘home’ for its warm climate, lean COVID-19 policies, and zero income taxes. Seeing the migration, several developers have jumped on the chance to build in the state, including in South Florida.
Lalezarian Properties did not respond to multiple requests for comment.
Should the design remain relatively the same, James said, construction would begin in 2024. The project would be built out in three phases and complete in about four years.
The new plans add to the Miami Worldcenter community, which already includes several high-rises, hotels, and $5 million in outdoor artwork. Projects like the one by Lalezarian will help meet demand, Johnson said.
“Demand still far outstrips supply even with this significant number of units coming online,” he said. “The number of units is music to my ears. The way we get out of this real estate crisis is to simply build more units.”
The massive development contributes to the overall goal the Downtown Development Authority has for downtown Miami. Decades ago, streets often were empty after workers left offices at the end of the day. Today, board member Alicia Cervera Lamadrid said, the DDA aims to draw more employers to diversify the local economy and build a live-work-play environment.
“With more people, it’s a safer place when you have places that aren’t empty city blocks and they attract bad behavior. Having a community that’s growing is a good thing. All of these projects attract jobs,” Cervera Lamadrid said. “A big part of our budget comes through real estate taxes. It’s very important that we continue to grow that tax base.”
