1616-92 Various Miami Beach COVER
V'
'? qtr.k;.
week,a notel at 926 Collins Ave. e
GREGG FIELDS — a 62 •
Aneighborhood i s BHerld Business Writer sold for $I.03 million
and 1 newly beauti- Otherlamorous percent lncrease businessln one owners say the
ar.
brought back from � ful South Beach reality is that, with all the major
/,>; their long-
:r has received some- changes in the area,
the brink, b u t t h e f; American neigh- the shuffle. Althourban time customers ugh beene lost
num-
disadvantaged aren't
num-
, late in bers are tough to come by, it's
/` the 20th Century, clear that a migration out of
i n the e % ever get: a second South Beach is accompanying the
sharing ��i ; •chance at prosper- migration in.
/,j/�,/,y�,,,, ity. Daryle Prager,co-owner with a
d prosperity.s e r i ty. //// Unlike most travel agency that recently left,
n e wf o u n p p / older enclaves, sees an ironic analogy with the
i South Beach is area's growing aesthetic values.
1
flush with capital, South Beach has gorgeous
its shops are full, the area is facades,is a hub
for theregularly hos lintsgg
brimming with new residents. industry
"It's the gold rush days," says beautiful people from the music
Daniel Diefenbach, a South and tlmrinll the talk about pres-
ustries.
Beach developer. Although he
wonders how long the bubble can ervation, no one seems con-
:` stay aloft, for now South Beach cerned about the older establish-
"is big bucks," he says. ments, or the people who were decade ago, when it was p'
' Ill
But in this urban equivalent of there long before it was fashion- with abandoned buildings
the ugly duckling story, South age, she says. erable property values and
Beach's transformation is turn- "I guess
Pra Prager says.just
When Pra able number of people liv
ing into a swan song for many of enough," gthe edge of the law. The t
31 the district's longtime believers ger Travel's lease expired the economy was peoph
and early pioneers. recently,the landlord didn't even depended on cheap rent
Rents on apartments and store- offer to renew. urban services. Prtmarilt
fronts are rising fast — in some "He said he'd rented it for four meant less-affluent re
cases tripling overnight. Many times our rent," Prager says.TheilL ( . .
recent immigrant familie
business owners and residents agency moved north of the Deco young people.
simply can't afford to stay.Those District to 41st Street. "It was a Early preservationists, N
n lucky enough to own a building heart-wrenching experience. The much money, demande
, ,
or a long-term Cease sometimes losers are the people who have
areas Art Deco architectui
T find the most profitable move is been there for years."
area's
along Ocean Dr
to sell out and leave.
To be sure, South Beach's preserved. The effort, c
Who could blame them? Last problems pale in comparison to a was a win-win situation.A
borhood's decline was re•
A treasure trove of archi
was saved.
But that was then.Toda
the boom covering virtue
entire island below I
Road, analysts say South
revitalization has entered
and phase—one that is 1
ing both winners and lose
Says Lenny Wolfe,a rea
expert with the Miami o
the Peat Marwick ace(
z. `"' firm:"The economics of t
are being elevated."
And so are the stakes.
«c, k e :x' Much has been
written about the
likelihood that the
o '' cutting-edge Acme
[ iHw.� Acting Co. and
" " Area Stage theater
nmightbe
troupesfrom South
� , :._ gyp,
t' '' t; ; ,7,, . ..a » t est "t." A{,J.• ♦ A,•,. " �A. ,:: .. r .' Beach by high
. ,
N _ �.: ,. - t s. But the dislo-
x
t rents
> �.+!iii . ,, ill , r► 4 ;, ' ... r cation trend is
f' _ , "' much wider.
w 7:� 1 ,t `� . With demand for
<:' tit , A,-.'-if ' � 4. space soaring, no
w <t �r $ ` Z rent control on the
�a;� '''-`;�, to-''. • 'A
books, and so
Qmuch of the area
o covered by historic
c preservation codes,
South Beach is fill-
ing up fast, and
o prices are gushing
upward.
w The phenome-
non is quickly dis-
Q CHUCK FADELY/Miami Herald Staff proving the maxim
that a rising tide V
W
OCEANFRONT JEWELS: The rehabilitation of South Beach's Art Deco architecture has fueled a fast increase in property values. lifts all boats. In P
iii
4
er-
COVER STORY
? _ like food markets, barber shops
s �.. and dry cleaners — catered to A HISTORY 0
locals whereas the new establish-
, �- 4 5 ,. ments are pricey restaurants and Oh,to be at the scene of
clubs that mostly cater to tour- The Scene.
� .• � = � ,r'. � `� ►.
ists. Despite what you may have
"Mom-and-pop retailers are heard,hipness didn't begin
being displaced; they're under with the rehabilitation of
pressure, says Saul Gross,presi- Ocean Drive.
r .- dent of Streamline Properties,
It's true,however,
who has brokered several leases. h
1. 4. .t "The trick is to keep some of South Beach s economic
4
xA �� z success is largely due thatto its
the old flavor,and yet attract that role as the epicenter of
retailer who'll be of service to the
y r �. trendiness.And trendiness is
area," he adds. "It's a balance.
o '! a fairly recent human
-r 1 ° Popular with outsiders development,although'Vs
' ,� not clear if it represents an
Sociologists say it's a balance p
loo/g,�; , that generally eludes gentrified advance or a reversal of
neighborhoods. evolution.
But South Beach faces a Why did trendiness begin?
dynamic that most neighbor- Credit the 20th Century's
hoods don't: the money pumped great advances in
in by tourists and foreign inves- transportation,affluence and
decade ago, when it was plagued tors. Unquestionably, the capital communication. In places like
g p glir truth, it raises some and sinks flows have been vital to the area's Paris in the'30s,and South
with abandoned buildings, mis- others. rebound. But on the flip side, Beach in the'90s,cultures
erable property values and a siz- Jose Heres is one of those with..money coming in from all mingled,ideas spread,trends
able number of people living on whose business was sunk. He has over the world, it can be tough were born.
the edge of the law. The base of owned two souvenir shops, both for locals to compete— particu- It was a sharp contrast to
the economy was people who Squeezed by h g h called Heres Gift Center, on larly because many are getting in the 1800s,when people
depended on cheap rents and South Beach for more than 20 late in thegame.
urban services. Primarily, this "I who'd spent a hard day
meant less-affluent retirees, rents many years. Recently, his rent on one thought all my buyers had settlingpthe West could hardly
of them went from $2,000 a been foreign,but in the last six to be expected to make the club
recent immigrant families and month to $5,000. eight months, the Americans
young people. scene.
So he's closing it. �.It was too have come into the market,"says Some sociologists may
Early preservationists, without mom-and-pop much too fast," he says. "I can't Scott Betten, a South Beach real °g y
scoff at the lasting value of
much money, demanded the afford it." estate broker. "I had a buyer in
!area's Art Deco architecture,par- here today,and he said he'd been trends,which are,by
ticularly along Ocean Drive, beRents are climbing on South Beach for five years but definition,temporary.
preserved. The effort, overall, s h o p s that s e rve d To be sure, some are profiting: hadn't put a cent into anything, Nevertheless,watching
was a win-win situation.A neigh- people who bought condos for as and now he has to buy." them over the last few
borhood's decline was reversed. decades is to glimpse some
I o e a l s are e c l o s i n little as$12,000 a few years back, David Rusk, a former Albu-A treasure trove of architecture g for instance.And those who cater querque mayor who has written of the social changes that
was saved. to the new arrivals. extensively on urban affairs,says have evolved in Western
But that was then.Today,with The Front Page, a boutique on South Beach isn't unlike ther civilization.
the boom covering virtually the and b e i n replaced Washington Avenue, is a case in Earlier in the century,
entire island below Lincoln � � gentrified neighborhoods across
point.The shop celebrates its sec- the country. literary figures were the
Road, analysts say South Beach and anniversary today, says The realities of urban life — biggest celebrities.Later
revitalization has entered a sec- by businesses that Orlando Font,a co-owner. Its cli- high costs, high crime, question- came movie stars,sex
and phase—one that is produc- entele is primarily models. able schools — are such that symbols and,eventually,rock
i ing both winners and losers. "There was nothing on this these enclaves are populated with stars.All of which,mixed
Says Lenny Wolfe,a real estate serve tourists. block," he says. the young,the childless and afflu- together,gives you Madonna.
)expert with the Miami office of But rents on Washington Ave- ent, he says. Their needs often Who hangs out on South
the Peat Marwick accounting nue have gone from about $12 conflict with what was there Beach,of course.
firm:"The economics of the area per square foot to more than$40 before. Herewith,a lighthearted
are being elevated." in that time, he says. And he's Neighborhoods that become (and wholly unscientific)
And so are the stakes. seen some older stores leaving.
Much has been l; gentrified, he says,often become survey of great moments in
written about then x.� "They have no "very polarized." hipness.
likelihood that the 1 choice," he says.
Rents are clim- Different obstacles THE '20s
cutting-edge Acme bing every day." Indeed, friction is rising on
Acting Co. and Recently, a nearby South Beach. Greenwich Village
Area Stage theater hair salon, which One organization, called Rain In the Roaring'20s,the
troupes might be had been there Mothers, recently appeared neighborhood just uptown
forced from South f/ .. more than 30 years, before the City Commission and from Wall Street was where
Beach by high left. demanded a halt to evictions, the parties were.And in an
rents. But the dislo- i
0c,, ,,. .
;' Rents are rising without success. Matti Bower, a era when writers were the
cation trend isso fast that they're community activist who has leading celebrities,
much wider. lspawning a new worked with the group, says Greenwich Village had
With demand for 1 industry:the selling many have been turned out of Eugene O'Neill,John Reed
space soaring, no of leases. Some their homes with as little as 15 and F.Scott Fitzgerald.
rent control on thedays'
books, and so shops have long- notice. Dance craze:The
r: term leases for as Bower, who is working with Charleston.
much of the area Er ER CONTRAC7C� little as$5 a square several rganizations on afford- Hip until:We weren't there,
covered by historic x foot annually. able housing issues,says demand but something tells us the
preservation codes, , rGreat Depression ruined the
�` � ;� But once the for low-cost units is soaring. But
South Beach is fill- 1 r ;I'4< ; �S mora oworow i r lease is sold, of the supply is drying u p
ing up fast, and : i' ' R ,m,.w i course, the usi- "We've been worki g for over mood.
prices are gushing ' � ,.,.t,�.owoo•-r fir
upward. '7 x� x 'i ' r ' ' ness must move on. a year to get low-income housing,
p r, , Its particularly but the numbers don't work, she
The phenome- - ` � «
'f ••, ,ti z c�., challenging for the says. "It's too late in the cycle of
non is quickly dis- neighborhood, housing prices."
proving the maxim RANDY BAZEMORE/Miami Herald Staff
p g because many of Even owning your own home
that a rising tide WILL REAL ESTATE KEEP ITS VALUE?Kay Statz, the displaced busi-
lifts all boats. In president of Camp Development,isn't so sure. nesses — things PLEASE SEE SOUTH BEACH, 28
1
like food markets, barber shops
and dry cleaners — catered to A HISTORY OF THE HIP
" locals whereas the new establish-
\;` s ,> ments are pricey restaurants and Oh,to be at the scene of THE '30s
` clubs that mostly cater to tour- The Scene.
., ists. Despite what you may have Paris,Left Bank
"Mom-and-pop retailers are heard,hipness didn't begin Hemingway fighting.
'' being displaced; they're under with the rehabilitation of Gertrude Stein barking.
1 �,lit, - pressure,"says Saul Gross, presi-
dent of Streamline Properties, It's true,however,that Tropic of Cancer.
who has brokered several leases. South Beach's economic Paris in the'30s was the
: ' "The trick is to keep some of success is largely due to its precursor to sex,drugs and
the old flavor,and yet attract that role as the epicenter of rock'n'roll.Is it any wonder
.--' retailer who'll be of service to the everyone wanted to go there?
-- .' area," he adds. "It's a balance." trendiness.And trendiness is rY
a fairly recent human Dance craze:The Tango.
Popular with outsiders development,althougl-it's Hip until:Let's put it this
Sociologists say it's a balance not clear if it represents an way,the Nazis weren't known
that generally eludes gentrified
advance or a reversal of for their Joie de vivre.
neighborhoods. evolution. THE '50s
But South Beach faces a Why did trendiness begin?
dynamic that most neighbor- Credit the 20th Century's South of France
hoods don't: the money pumped great advances in When Grace Kelly married
in by tourists and foreign inves- transportation,affluence and Prince Rainier in 1957,her
tors. Unquestionably, the capital communication. In places like cohorts in Hollywood learned
truth, it raises some and sinks flows have been vital to the area's Paris in the'30s,and South that Monaco wasn't in Africa.
others. rebound. But on the flip side, Beach in the'90s,cultures The Riviera became a
Iry
Jose Heres is one of those with money coming in from all mingled,ideas spread,trends glittering hub of starlets,
j whose business was sunk. He has over the world, it can be tough were born. glamour and royalty without a
eze d by high owned two souvenir shops, both for locals to compete— particu- It was a sharp contrast to
thethrone.Brigitte Bardot's
called Heres Gift Center, on larly because many are getting in 1800s,when people relocation to St.Tropez gave
South Beach for more than 20 late in the game. who'd spent a hard day the area a boost in the'60s.
years. Recently, his rent on one "I thought all my buyers had settling the West could hardly Dance craze:Chubby
n is, many of them went from $2,000 a been foreign,hut in the last six to be expected to make the club Checker's The Twist.
month to $5,000. eight months, the Americans scene. Hip until:The late 1960s,
So he's closing it. "It was too have come into the market,"says Some sociologists may when the hippest were the
Tl-and-pop much too fast," he says. "I can't Scott Betten, a South Beach real scoff at the lasting value of hippies.
afford it." estate broker. I had a buyer in trends,which are,by
here today,and he said he'd been definition,temporary. THE '70s
s that s e rye d Rents are climbing on South Beach for five years but
To be sure, some are profiting: hadn't put a cent into anything, Nevertheless,watching New York
them over the last few
people who bought condos for as and now he has to buy." Can anyone forget those
decades is to glimpse some
little as$12,000 a few years back, David Rusk, a former Albu-
for
pictures of the parties at
s are closing for instance.And thoswho cater mayor of the social changes that
querque ma or who has written Studio 54?Sex clubs were
have evolved in Western
to the new arrivals. extensively on urban affairs,says opening all over Manhattan.
The Front Page, a boutique on South Beach isn't unlike other civilization. Cocaine became the drug of
i n g replaced Washin ton Avenue, is a case ingentrified neighborhoods across Earlier in the century,
Washington g choice.
point.The shopcelebrates its sec- the literary figures were the
country. Dance craze:Disco.
and anniversarycelebrities.Lt
today, says The realities of urban life — biggest Later Y Hip until:Drug rehab
s i n e s s e s that Orlando Font,a co-owner.Its cli- high costs, high crime, question- came movie stars,sex became the thing to do.
entele is primarily models. able schools — are such that symbols and,eventually,rock
"There was nothing on this these enclaves are populated with stars.All of which,mixed THE '80s
v e tourists. block," he says. the young,the childless and afflu- together,gives you Madonna. Aspen
But rents on Washington Ave- ent, he says. Their needs often Who hangs out on South
nue have gone from about $12 conflict with what was there Beach,of course. Host to rock stars like Don
per square foot to more than$40 before. Herewith,a lighthearted Henley and movie stars like
in that time, he says. And he's Neighborhoods that become (and wholly unscientific) Melanie Griffith.
seen some older stores leaving. gentrified, he says,often become survey of great moments in Dance craze:Who has time m
"They have no "very polarized." hipness. to dance?
choice," he says. Hip until:Ivana Trump
"Rents are slim- Different obstacles THE '20S confronted Marla Maples on
bing every day." theslopes.Anytownh
Indeed, friction is rising on were
Greenwich Villageo
Recently, a nearby South Beach. women are fighting over z
' hair salon, which One organization, called Rain In the Roaring'20s,the Donald Trump is—well, >
had been there Mothers, recently appeared neighborhood just uptown going downhill. .7<"f more than 30 years, before the City Commission and from Wall Street was where
left. demanded a halt to evictions, the parties were.And in an THE '9HS v
Rents are rising without success. Matti Bower, a era when writers were the South Beach -0
so fast that they're community activist who has leading celebrities, m
Sex,sand,sex,surf,sex,
spawning a new worked with the group, says Greenwich Village had suds. co
industry:the selling many have been turned out of Eugene O'Neill,John Reed We're not sure what the 33
m
C, of leases. Some their homes with as little as 15 and F.Scott Fitzgerald. is but • a
shops have long- days' notice. Dance craze:The appeal of South Beachs
term leases for as Bower, who is workingwith it seems to draw a crowd.
GE!'ER AL CONTRACIC.,. Charleston. uo
• little as$5 a square several organizations on afford- Dance craze(most
foot annually.q able housingissues,says demand Hip until:h ng weren't there, recent):Sunday's T. `''
Y• Y but something tells us the. �
N, But once the for low-cost units is soaring. But Great Depression ruined the Hip until:The clock's =:
lease is sold, of the supply is drying up. mood. ticking. . . m
'�' r* , . . course, the busi- "We've been working for over GREGG FIELDS• >
'�`'p'" 1v�rness must move on. a year to get low-income housing,
,s - ,ff It's particularly but the numbers don't work,"she
., ;'/ challenging for the says. "It's too late in the cycle of m
RANDY BAZEMORE/Miami Herald Staff n e i g h b o r h o o d, housing prices." J
because many of Even owning your own home r
KEEP ITS VALUE?Kay Statz, the displaced busi- .
Ivelopment,isn't so sure. nesses — things PLEASE SEE SOUTH BEACH, 28 .
- P
COVER STORY
tions."
SOUTH BEACH, FROM 27 His office is investigating pos-
isn't necessarily a protection,she sible solutions. For instance, the "' � ��
:S
says.That's because some low-in- city is considering building a ., .. z� _
come people are having troubling "black box" theater on public ��
paying taxes on homes that have land that could be used by com- q
more than doubled in value. munity arts organizations. »; x
"When this was a slum, I got And he's hoping to find fund- `" g' k
x;ra
involved to improve the quality ing for affordable housing, ;'^
of life," Bower says. "Now were although solutions are elusive. °` �° ` 10 y�
battling overdevelopment." For instance, some government . •'-••' g5 $
When rents were raised last fall grants are good only for aban- °a " $
at Morton Towers, a bayfront doned buildings.
for instance, elderly "Today, you can't find an � ,
high-rise,
tenants organized protests. uninhabited building on South >€ : A•
"The rents were jacked up in Beach," Carlton says. ��
quite steep increments," says But another area of concern— z � ?
Paula Harper, a University of high commercial rents—isn't an •
;Y.;ami professor who had com- area for government interfer-
plained to management on behalf ence, he says. Although rents are .
• of her neighbors."Part of that, it so high that even some real estate a
seems to me,was to get rid of the professionals are bracing for a •� .2x53 £m ,f r �a ,
old folks. wave of failed businesses, "it's F �s` i�5�; .a
. But Len Abrams, general man- really a private-sector thing, �'�z .., xis p
ager at Morton Towers, says it's Carlton says. F i xiw x
unfair to castigate landlords for However, with the displace- `:,,a
charging market rates.They,too, ment of mom-and-pop shops in F ,4
stuck with South Beach through the tourist district, the city may � J- ;
its lean years, he points out. encourage development of shop- f m '
At the same time, he acknowl- ping areas for locals across the ,.i . .. ,::. 1:„...,:,:_:,,,. .,,,;:_..,,::,:„.,: ,... ..:
edges that South Beach's days as island, along the less-developed ..
3
a retirement community are lower west side, he says. AL DIAZ/Miami Herald Staff
likely over. His complex's pro- Where canyou live? A NEW SOUTH BEACH:Orlando Font of the Front Page boutique says many patrons are models.
-�crtion of older people has Y
dropped to about 15 percent, The reality is that, in today's expensive, too. Kay Statz, presi-
from 40 percent. The parking lot market, it isn't just low-income dent of Camp Development,says _
has more expensive cars than it households having trouble find- rents are so high that many ten-
did before, reflecting the influx ing affordable housing. Even ants want to buy.
• of young professionals. some of the young professionals That's producing a second
"Where are the retirees going?" are feeling squeezed. trend, where older buildings —
lie asks. "They're moving out to Jack Schlossberg, a property both low-rises and huge high- With l } prices rISIng sharply
Century Village.Or they're mov- appraiser for Metro-Dade, rises — are being
converted to
ing out of Dade County." endured sharp rent increases condominiums, taking more
' after moving to South Beach two apartments off the market. and many buildi n g s g o i n g condo,
Looking for answers years ago. He began scouring for Even in the former nether-
One of those who doesn't want a condominium. But prices were world below Fifth Street, some
to see them go is Roger Carlton, rising between 10 and 20 percent rehabbed units have sold for up
city manager of Miami Beach. annually before Hurricane to$285,000. the demand for affordable apartments
While gentrification's benefits Andrew. He estimates they've Nevertheless, Statz says he's
outweigh its costs, there's no risen another 30 percent since. concerned about real estate keep-
.question that it "impacts nega- He gave up and is moving ing its value. Some condos he's
tdvely on the economically disad- away, to a townhouse several seen are poorly done, he says, i s soaring a s t h e supply d r i es up.
vantaged, marginal businesses, miles north of South Beach. and are going to require substan-
and arts and cultural organiza- Rentals are growing more tial maintenance. Some prices
aren't likely to be sustained in
the resale market, he says.
"Real estate in America is a CHANGES IN SOUTH BEACH
very funny thing," says Statz, a
_, native of Hamburg, Germany. Numbers don't tell the whole story,but they point to the eco-
• "It comes up very fast, and goes nomic and social changes under way.These figures are from a sta-
m /� down very fast." • tistical abstract provided by the city of Miami Beach,from studies
, And more attention needs to by the Census,the University of Florida and other sources.
� F:' be paid to affordable housing,he Property values rise
t,, <:: ". adds. "We need housing for the P tY
4 r manager,and for the maid in the Change,1992-93,for area below Dade Boulevard
hotel, he says. It •
s got to be a
„ Condominiums up 21 6 percent
N 4p good compromise. ,� y «:x :> .A:,:,:.:..
\ A different question Total 'up 27.1 percent
CD .�, While that may be, real estate
w ' ' a • booms aren't noted for their rea- Median age falls
a , _ coned give-and-take. Particularly As young professionals have flooded in,the median age for
co ,. iwA. Y., in South Beach, whose history the city has fallen.Percentage of the population by age group:
} ess- has been marked, alternately, by booms and disrepair. Age group 1980 1985 1990 2000*
zA decade ago, many were ask- 25-44 13.7% :....19.9% 28.8% 21.5%
ingif South Beach could be """ Yx ig
•
olck' � k.:' 3; 3 :>::>€::::>::> %...:::> >:f 'z' >'> . :moi
2 • /. saved. Today, the answer is Median age 65.3% 56.0% 49.5% 43.7%
clearly yes. Projected.
But in the process, another
question has been raised:Did the Per capita income rises
w economic forces that led to South With the decline in the number of retirees,Miami Beach
= of itsBeacss ualvation also cost it part became more affluent.Per capita income:
� of its soul? p
a "This happens around the 1980 1990 Chg•
world,,, says Mark Hampton, a fai 110 :....... ...:. $8 t34.. ...... $14,504':`:' ::....."":.�....5Ir
PETER ANDREW BOSCH/Miami Herald Staff construction engineer who has Dade County $7,722 $13,686 +77.2%
worked in the area. Real estate
PRICED OUT OF THE MARKET:Dick and Daryle Prager of Prager values go up,and it starts chang-
Travel,formerly on South Beach's Lincoln Road. ing the neighborhood."
4