Developer Michael Shvo is bullish on Miami Beach
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A rendering of the planned loggia at 407 Lincoln Road, courtesy of SHVO
Michael Shvo, an Israeli immigrant, began his real estate career as a broker and moved into development with his firm Shvo.
- Over the last several years, Shvo — who in 2018 pleaded guilty to tax fraud — has been buying up premium real estate across the country, including San Francisco's iconic landmark the Transamerica Pyramid Center.
We asked Shvo why he jumped into the Miami Beach market.
(Editor's note: Answers have been lightly edited for length and clarity.)
Q: Why are you so bullish on Miami Beach?
A: Because there's a limited amount of land and the barrier to entry of developing is very high. We've had a very strong focus on Class A super luxury office buildings in Miami Beach. We're one of the largest developers of Class A and almost the only developer [doing that here].
Q: Tell us about your Miami Beach projects and why you chose them:
A: The clock tower is at the south end of [Soundscape] park, and One Soundscape is on the east side of the park. ... As New Yorkers, we believe that any property that's sitting on the park is extremely valuable. … The area itself is a very central area — two blocks from City Hall, two blocks from the ocean, a block from the convention center, steps away from Lincoln Road.
The Raleigh is the most beautiful property in Miami Beach. Time Magazine in 1947 [called it] "the most beautiful pool in America." … We're demolishing the non-historic parts of the building and we're restoring [the historic hotel] to perfection.
Q: Why focus on office space when more companies are embracing remote work?
A: [For the influx of] hedge fund guys, private equity guys, real estate guys. They don't want to drive all the way to Brickell, 45 minutes, to go to their office and 45 minutes back. … In New York, I have a beautiful office overlooking Central Park with a huge terrace. In Miami, my office is nothing to write home about. So after I saw the lack of product, we decided to take a big position on office. And particularly since [a November referendum asking voters whether city-owned parking lots should be developed as offices] got rejected, truly we have almost no competition.
Q: Climate change doesn't scare you off from developing here?
A: A lot of things scare me, but we can only handle what we can control. I can't control climate change. What we can do is make sure that every single one of our buildings is resilient.
Q: What's your advice for people aspiring in real estate?
A: Only do what only you can do. ... Everybody should always figure out what they're best at, and focus on that.