WRE News: Clevelander Hotel Set to Undergo Dramatic Transformation for Affordable Housing

Miami Beach, FL – September 8, 2023 – In a groundbreaking move, the Clevelander Sobe Hotel and Bar has unveiled plans to embark on a transformative redevelopment project that will address the pressing issue of affordable housing scarcity in Miami Beach.
 The Clevelander has enlisted a prominent architect to oversee the creation of one of the most substantial affordable housing developments on private land within Miami Beach. Notably, 40 percent of the new units will be dedicated to affordable housing rentals. The redevelopment will encompass the existing Clevelander and adjoining Essex House Sobe hotel properties, both owned by Jesta Group, preserving their iconic Art Deco facades. Miami Beach Mayor Dan Gelber expressed his surprise regarding the proposal and issued a statement labeling it as the “most ill-conceived notion.” Gelber criticized Jesta Group, the purchaser of the Clevelander and Essex properties in 2018, and remarked that they should feel a sense of embarrassment. He emphasized that constructing thirty-story buildings would fundamentally undermine the globally recognized, iconic image of our city, as noted by Gelber in his statement.

The project aligns with Florida’s Live Local Act, which eliminates restrictive zoning regulations to make affordable housing development economically viable. Under the Act, the Clevelander redevelopment can reach a maximum height of approximately 30 stories, and the density can match the highest allowed in the city, with a commitment to maintaining affordability for 30 years. This project presents a unique opportunity to revamp the Clevelander’s business model while serving the community with affordable housing options.