Lease Amendment Advances $50 Million Expansion Of The Rivani In Miami Beach

Miami Beach officials are backing an estimated $50 million rooftop expansion of The Rivani, a seven-story mixed-use building at 1691 Michigan Avenue. The proposal, led by Miami-based developer Robert Rivani, would transform the building’s upper levels with approximately 36,000 square feet of office space, a 6,000-square-foot restaurant, and three rooftop padel courts, while extending the ground lease for the city-owned land beneath the property through 2132, subject to additional approvals.

According to an article from The Real Deal, the Miami Beach City Commission unanimously approved the proposed ground lease amendment on first reading during its meeting on Wednesday. The existing lease, originally approved in 1999, expires in 2052 and includes two 20-year renewal options. The amendment would add two additional 20-year renewal options, extending the lease through 2132. A second reading is scheduled for July 22, after which the proposal must also receive approval from Miami Beach voters because the property sits on city-owned land.

Rivani acquired The Rivani and its associated ground lease for $62.5 million in 2024. Since the acquisition, he has previously stated that approximately $40 million has been invested in renovations to reposition the property.

The proposed expansion would require removing the sixth level of the building’s existing parking garage, eliminating approximately 250 parking spaces to make room for the new rooftop program. Plans call for the addition of 36,000 square feet of office space, a 6,000-square-foot restaurant, and three rooftop padel courts.

In exchange for the extended lease term, Rivani has proposed increasing payments to the city. Beginning in 2033, the annual base rent would increase by at least $500,000, according to city documents. The city’s share of the property’s gross revenue would also increase from 2.5 percent to 3 percent. Last year, the percentage rent generated approximately $279,700 for the city.

The proposed agreement also includes $1.3 million in public benefits funded by Rivani. The contribution would include $600,000 for improvements and public art along Lincoln Road, as well as $150,000 to support Miami Beach’s human trafficking tip line and sister cities initiative, with the remaining funds allocated to additional city projects and programs outlined in the lease amendment.

If ultimately approved, the rooftop expansion would substantially reconfigure the upper portion of The Rivani, replacing a portion of the existing parking structure with new office, dining, and recreational uses while extending the life of the ground lease into the next century.

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