Michael Shvo proposes a second office project in South Beach

A rendering of the proposed office building and Michael Shvo (Kobi Karp, Shvo)

Michael Shvo doubles down on the Miami Beach office market.

After gaining city approval for an office project along Alton Road, Shvo filed plans for a six-story office building at 1665-1667 Washington Avenue, according to city records.

The Kobi Karp-designed development would include 21,000 square feet of office space on the top five floors, 58 parking spaces, a 1,000 square foot cafe on the ground floor and a 5,500 square foot rooftop terrace. The site is just over a quarter of an acre.

The Miami Beach Planning Board is expected to vote on the proposal on September 20.

Shvo’s namesake New York-based company, through a subsidiary, purchased the property at 1665 Washington for $4.5 million in February, property records show. It currently houses a three-story office building covering 10,000 square feet. The vacant land at 1667 Washington Avenue was included in Shvo’s $103 million purchase of the Raleigh Hotel in 2019.

In its other office development in South Beach, Shvo wants to build a 250,000 square foot project that will include retail on the site of a commercial strip at 1656-1680 Alton Road – including Epicure’s former home Gourmet Market & Café – as well as adjacent parking at 1677 West Avenue.

In June, the Miami Beach Planning Board approved the release of an alley to allow the project to proceed. The Alton Road building has yet to be approved by the city.

Shvo’s office projects come as South Beach approaches a crossroads. Developers and some city officials are calling for the construction of offices that would help erode the region’s party image. Still, others push back on traffic issues and questions about the demand for space rental.

In November, voters in Miami Beach will vote on plans for two development teams — one led by Don Peebles and the other by Integra Investments and including Barry Sternlicht as a partner — to build offices at sites separated near Lincoln Road.

Shvo, who started as a broker before becoming a developer in New York, first set his sights on Miami Beach’s beachfront hotel market, with redevelopment projects. He and his partners, Turkish investor Serdar Bilgili and Deutsche Finance, bought the Raleigh, South Seas and Richmond hotels for a total of $243 million in 2019. The partnership has fallen on hard times, with heated lawsuits between Bilgili and Shvo. The costumes have been settled, with Shvo and Deutsche continuing their plans for the hotels.

They plan to restore the properties and develop a 17-story, 44-unit condo tower on part of the Raleigh site. Upscale Rosewood Hotels & Resorts will manage the Raleigh and mark the new tower.

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