Raanan Katz Lists Miami Sears Site for $100M+ After Live Local Act Upsize

Key Points:

• RK Centers is selling its 8.1-acre Miami Sears site, approved for a 1,050-unit Live Local Act project, with an asking price exceeding $100 million.

• The development plan includes 995 apartments, 55 townhouses, 43,000 sq. ft. of retail space, and 1,924 parking spots.

• Located at 3655 SW 22nd Street, the project leverages Florida's Live Local Act to exceed traditional zoning limits.

Miami Heat minority owner Raanan Katz's firm, RK Centers, is marketing its Miami Sears site for sale, seeking over $100 million. The 8.1-acre property, situated at 3655 Southwest 22nd Street, has received approval for a substantial mixed-use development under Florida's Live Local Act.

Development Details 

• Project Scope: Three eight-story buildings comprising 995 apartments and 55 rental townhouses.

• Affordable Housing: 420 units designated for households earning up to 120% of the area median income, complying with Live Local Act requirements.

• Commercial Space: 43,000 square feet of ground-floor retail.

• Parking: Two garages accommodating 1,924 vehicles.

• Design: Architectural plans by Behar Font & Partners.

The Miami Urban Development Review Board approved the project in June 2024, and necessary administrative approvals have since been obtained.

Live Local Act Impact 

Enacted in 2023, Florida's Live Local Act incentivizes affordable housing by allowing developers to exceed local zoning restrictions if at least 40% of units are designated for workforce housing. In this case, the act permits increased building height and density, facilitating the project's scale. 

However, the act has faced criticism from local communities. Residents of the adjacent Coral Gate neighborhood have expressed concerns about the development's impact on their community, citing potential issues with traffic and neighborhood character. In response, the Miami City Commission passed a resolution urging the state to amend the act to provide better protections for single-family neighborhoods. 

Market Context 

The listing comes amid a challenging environment for developers, marked by elevated interest rates, increased construction costs, and a multifamily housing oversupply in South Florida. Despite these headwinds, high-profile properties like the Sears site remain attractive to investors. CBRE brokers Robert Given and Brad Capas, representing the seller, suggest that buyers might wait out current market conditions or adjust development plans accordingly.

The sale of the Miami Sears site reflects a strategic move by RK Centers to capitalize on the enhanced development potential afforded by the Live Local Act. While the project offers significant opportunities for affordable housing development, it also highlights the tensions between state-level housing initiatives and local community concerns. As the market evolves, this listing will be a key indicator of investor appetite for large-scale, mixed-use developments in South Florida.