Iconic Clevelander Bar In Miami Beach Slated To Be Replaced With 30-Story Residential Tower
The Clevelander Hotel and Bar, an iconic Miami Beach hotspot, may close to make way for affordable housing and condos.
Jesta Group, which owns the Clevelander bar at 1020 Ocean Drive and the adjoining Essex Hotel, announced plans Thursday to replace the property with a 30-story apartment and condo building with 40% of its units dedicated to workforce housing. A ground-floor restaurant is also included in the plans.
The Canadian real estate investment firm plans to leverage Florida’s Live Local Act — which is meant to spur affordable housing development and went into effect in July — to win approval for the development.
“Since purchasing the Clevelander Hotel and Bar a few years ago, we have been proud to operate this legendary and iconic establishment in South Beach,” Jesta Group Senior Managing Director Anthony O’Brien said in a statement. “Although we are happy to continue operating as we have, some have expressed a desire that we change our business model at the property.
"With the Live Local Act, we now have a unique opportunity to do that.”
Jesta purchased the hotel and bar from an entity managed by Miami Beach-based Brio Investment Group in 2018 for $20.6M.
Jesta plans to leverage provisions of the state law that allow developers to build housing taller and with more density than zoning rules allow if at least 40% of its units are set aside for residents making up to 120% of area median income, which was $86,760 for a single person as of May.
The law allows Jesta to build up to 30 stories with a density of 150 units per acre, according to the release. The redeveloped Clevelander would have a maximum of 137 units, representatives for the company told the Miami Herald, with the affordable units available for rent while the rest would be sold as condos.
The redevelopment plan comes as Miami Beach officials make efforts to change the city’s reputation as a party destination. The owners of the Clevelander, which serves alcohol until 5 in the morning, successfully sued the city in 2021 to block an attempt to roll last call in the area back to 2 a.m.
“The Act allows us to redevelop the Clevelander and Essex House sites with enough density and square footage to justify the shift in our business model while providing an important public service in the form of affordable housing,” O’Brien stated.
While the redevelopment would preserve the facades of the historic buildings, Miami Beach Mayor Dan Gelber called the plan “the worst idea ever” in a statement to the Herald, adding that “thirty-story buildings would simply destroy what is known throughout the world as the iconic postcard of our city.”
Any attempt by Gelber to block the development, however, could be hamstrung by the Live Local Act. The law requires municipalities to provide administrative approval for developments that fit within its provisions, even if plans circumvent local zoning rules.
“We applaud the State of Florida for making this happen,” Alexander Tachmes, an attorney at Shutts & Bowen and a spokesperson for the Clevelander, said in a statement. “This is a huge win on multiple levels. The city wins by achieving its goal of turning a nightlife venue into a sophisticated restaurant and replacing hotel rooms with residential product on Ocean Drive.”
