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July 29, 2010 |
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| July 01, 2008 |
By: Paola Iuspa-Abbott |
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iscount retailer Wal-Mart is negotiating to open a store in a planned retail complex that would be built next to the Miami Herald building and steps way from Miami-Dade’s new performing arts center.
Developer Mark Siffin is finalizing a deal with Wal-Mart to anchor his proposed five-story retail center known as City Square, according to several sources familiar with the negotiations. The project would include more than 25 tenants, with restaurants on the ground floor and big box retailers to fill the 675,000-square-foot mid-rise designed by the world-renowned, Miami-based firm Arquitectonica.
The news generated mixed feelings in the business and political community. Some praised the possible arrival of the world’s largest retailer; others expressed concerns over what could be a neighborhood misfit.
The closest Wal-Mart stores are in North Miami Beach and Hialeah. Miami’s downtown is home to many mom-and-pop shops and small outlets of national chains but has few big box retailers.
Siffin, chief executive officer and managing member of Maefield Development in Indianapolis doesn’t own the land where he wants to build City Square yet, but plans to buy it from Miami developer Pedro Martin. Martin has a $190 million contract to buy four parcels from The McClatchy Co., the Herald’s parent company. Last week, Martin said he expects to close the land deal — pending for almost three years — by Dec. 31. Martin intends to flip the three largest parcels to Siffin after the closing.
The city approved City Square and Martin’s proposal to build condos on the future parcel in 2006.
Martin and Siffin declined to comment on the Wal-Mart lease because confidentiality agreements prevent them from discussing the transaction.
City Square will include the five-story retail center, a 10-story parking garage for retail patrons and a seven-story garage that will serve the Adrienne Arsht Center for the Performing Arts. City Square is planned at 1431-1451 N. Bayshore Drive and 425 NE 13th St., between the Herald building and the performing arts center.
Shoppers at the proposed Wal-Mart and those attending shows at the performing arts center would cross paths at City Square. That thought troubles Miami City Commissioner Marc Sarnoff, whose district includes the Herald site.
“I am concerned about a Wal-Mart being placed in downtown Miami,” Sarnoff said. “A Wal-Mart across the street from the performing arts center doesn’t seem to fit the character of the neighborhood.”
Sarnoff said he is analyzing the situation before adopting a formal position for or against Wal-Mart. Sarnoff was elected after spearheading the fight against a Home Depot in the Coconut Grove neighborhood of Miami a few years ago. He led a coalition of residents who opposed the home improvement store, arguing it was out of character with the neighborhood.
After years of battling in and out of the courts, Home Depot recently built a 70,000-square-foot store, compared with the 140,000-square foot facility it originally wanted.
A Wal-Mart in downtown Miami would contrast with the new luxury high-rises along Biscayne Boulevard, many with bay views selling for more than $1 million. But retail consultant Michael Finkle considers the location ideal for the nearly 200,000 people who work downtown, and area residents.
“Wal-Mart has a huge population to draw from,” said Finkle, managing director of Miami Beach-based Koniver Stern Group. “It definitely will bring a lot of people to the project.”
However, Wal-Mart’s presence will also limit the type of tenants who will want to operate next to the big discounter, he said. Other, value-oriented companies like Bed Bath & Beyond and pet and office supply stores have no problem being near a Wal-Mart, he said.
“Wal-Mart gives a project personality,” he said. “It defines your project.”
Wal-Mart operates three store categories: supercenters that average about 187,000 square feet and offer general merchandise and include a full-line supermarket, discount stores that average about 108,000 square feet and offer general merchandise and a limited variety of food products, and Neighborhood Markets that average about 42,000 square feet in size and offer a line supermarket and a limited assortment of general merchandise.
Retail brokers familiar with the pending deal said Wal-Mart may try to come up with a new design to fit a more urban environment in a multi-story shopping center.
Real estate consultant David Hirschfeld said tying down a tenant with a good credit rating like Wal-Mart is crucial to get financing for a retail project in today’s credit crunch. Lenders have considerably tightened their underwriting standards and require commitment from tenants prior to agreeing to finance a retail center.
“It is a big booster for the project,” he said.
Siffin is not the only developer planning a retail project north of downtown Miami. Developer BDB Miami is planning Bayview Market on nearly 7.35 acres at Northeast Second Avenue and 17th Street.
Last year, BDB executives said Lowe’s would anchor the project’s first floor. New York-based Argent Ventures is spending more than $140 million to renovate the former Omni Mall at 1601 Biscayne Blvd. and return it to its retailing roots. Argent’s plan includes more than 250,000 square feet of big-box retailers and space on the ground floor for restaurants and small shops. For years, the mall has unsuccessfully tried to become home to telecommunication firms and offices.
A little further north, the newly built Shops at Midtown Miami is home to big box retailers such as Target, PetSmart, and Ross Dress for Less. Midtown Miami is a mixed-use project along North Miami Avenue between Northeast 29 and 36 streets.
Paola Iuspa-Abbott can be reached at piuspa@alm.com or at (305) 347-6657.
Reader's comments
James J. Deane said:II think putting a Wal-Mart at the location will have a disatrous effect to the community. The performing arts district, the yet to be built bay front park museum and the design district just north of the area are the new cultural centers of our city. The property should be used to build something similar to Merrick Park our Lincoln Road, with art galleries, as it just seems as this would be a natural extension of the area. Wal-Mart does not belong at that location and I will fight with the community to stop it from opening a store at that location. Obviously someone in Indianapolis has no clue of the importance of this area for the city's growth. Now I am even more in agreement with what Braham is doing! The money moved from this district to build a Baseball Stadium could be used to purchase this property and ensure that Wal-mart does not open up in that location. I will be signing his petition today! Thanks for the excellent article! I hope it wakes everybody up in our City Counsel! July 1 at 11:09 a.m.
said:i love these socialistic citizens who want to dictate what a private property owner can do with his prperty.....wow how this country is going down fast. why have a trade embargo on Cuba when we're fast approaching communism already? July 4 at 2:42 p.m. |
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