Target Signs Lease for Small Format Store in North Beach

Susan Askew
Susan Askew

Target Signs Lease for Small Format Store in North Beach:

Pacific Star Capital project has now cleared all land use board approvals

Target has signed a lease to take the large retail space in a mixed-use development approved for the North Beach Center and, this week, developer Aria Mehrabi’s Pacific Star Capital received approval from the Miami Beach Planning Board for extended delivery hours to meet the terms of its agreement with the retail giant. The Planning Board, however, imposed restrictions that would limit deliveries to only outside of morning and afternoon rush hours.

The project, which received Design Review Board approval in October 2020, is located on a block south of 71st Street between Byron and Abbot Avenues. Pacific Star Capital acquired the site from City National Bank in 2017.

The developer plans to build a 12-story residential tower with 170 units above the 30,089 sq. ft. Target.  A parking garage with approximately 179 spaces will serve retail customers and residential tenants. There will also be a 3,534 sq. ft. clubhouse and open green space located on the roof of the parking structure.

The legislation establishing the North Beach Town Center allows for two retail establishments over 25,000 sq. ft. With Target signed as a tenant for the Pacific Star development, that leaves one slot for a future development in the area.

This would be the second Target location in Miami Beach. The first opened on Fifth street in the fall of 2019.

When the Planning Board initially approved the operations plan for the North Beach retail store, it allowed deliveries between 9 am and 3 pm and 6 pm and 8 pm, Monday through Friday and between 9 am and 4 pm Saturdays and Sundays. Mehrabi sought delivery hours of between 7 am and 8 pm, seven days a week.

After an extensive back and forth, the Board and Mehrabi accepted a compromise proposed by new Board member Tanya Bhatt to allow deliveries between 6 am and 9 pm five days a week except between the hours of 8 am and 9:30 am and 4:30 to 6 pm. On weekends, the delivery times would be between 9 am and 9 pm.

Mehrabi emphasized the importance of the development and Target to the revitalization of North Beach, noting he and his team have been “working on this for four years now and it took a lot of effort to bring Target to the area and make them believe in North Beach and see the vision.” Target, he said, is making an investment of $8 to 10 million to get the store open and operational. Additional delivery hours are “pivotal to them.” Expanding the hours, he said, would allow deliveries to be spread out over a longer period of time thus helping to alleviate traffic bottlenecks.

The building’s delivery area is enclosed and trucks will make three-point turns internally to prevent them from having to back up onto the street. Size of the trucks is limited to less than 43 feet. Mehrabi also pointed out that Byron Avenue is a dead-end street. “Traffic numbers are minimal,” he told the Board. City staff recommended a dockmaster to control logistics which the Planning Board approved. 

“A lot of thought and effort went into this over the last few years,” Mehrabi said. “There’s a real movement to turn North Beach around and unless you have this kind of development, frankly, that won’t happen. As you know there are other approved projects, but nobody will begin. So, we have a tenant which signed a lease. It took four years. It took us a lot of hard work to get them, to pitch them the vision of the future [from] what it is now” and what it can be following approval of the North Beach Master Plan. It was the Master Plan that attracted Pacific Star Capital to the site which is located in the area designated as the Town Center, Mehrabi said.

“So, this is where we are now and if we can’t allow the tenant to operate, as I said it simply, they’re not going to make the investment and that investment is not small,” he told the Board members.

When Board member David Weider pushed back saying the City negotiated hard with Apple on terms for its Lincoln Road operations, Mehrabi said, “Lincoln Road is not North Beach so Target is not really pushing to get into North Beach. We had to work three years to get them there.”

In the end, compromise was reached for the extended hours with no rush hour deliveries.

According to the operational plan submitted by Pacific Star and Target, the small format stores are “approximately one-fourth the size of a typical Target store and offer a merchandise assortment customized to meet local community needs.” Mehrabi told the Board the North Beach store will include a mini grocery and coffee shop.

The store will employ between 75 and 85 full and part-time employees and, generally 15 to 20 are at the store at a given time with temporary increases during shift changes.

“Over 60% of Target employees live within five miles of the store where they work. Target endeavors to hire locally, but this is dependent on local market conditions,” the operational plan states.

According to the operations plan, the store is expected to receive two deliveries from Target distribution centers on a typical day and five to ten vendor deliveries per day. All back of house, delivery, and trash operations will be accessed and conducted on the Byron Avenue side of the building.

The Planning Board application materials are here.

Rendering: CUBE 3

Deauville Update: Expect a Protracted Legal Battle

Susan Askew
Susan Askew
Little progress as historic hotel remains shuttered, continues to deteriorate

Finvarb Mixed-Use Development Approved for North Beach Town Center in Miami Beach

Susan Askew
Susan Askew
Project could be the first built in the new Town Center