Vast Hyatt Regency complex wins Miami lease

The land lease deal between the city and developers of the Miami Riverbridge project has won approval, paving the way for a reimagined Hyatt Regency hotel, residential apartments, green space and a revitalized waterfront downtown.

On July 13, the Miami City Commission unanimously approved the amended lease agreement for the existing Hyatt Regency Hotel at 400 SE Second Ave., allowing for the proposed Miami Riverbridge to rise at the property. The mixed-use project will provide over $1 billion in increased revenue for the city and include a modernized hotel with event and retail space, apartments and an improved 480-foot public promenade along the Miami River.

Miami initially entered a long-term lease for the city-owned waterfront property in 1979. For years, officials have considered plans to renovate the four-acre site, which includes the adjacent and aging James L. Knight Convention Center.

In November 2022, 64% of voters approved a referendum to extend the Hyatt lease with HRM Owner LLC, a joint venture between Hyatt Hotels Corp. and Miami-based luxury hospitality and residential real estate firm Gencom.

“The Miami City Commission’s unanimous vote in favor of Hyatt and Gencom’s land lease agreement sets into motion the transformational Miami Riverbridge development in Downtown Miami. Now that the lease has been approved, we look forward to finalizing construction plans with the city over the coming year,” the partners said in a statement.

Designed by Miami-based Arquitectonica, plans for the site include three towers offering residents and hotel guests panoramic views of downtown Miami and Biscayne Bay. Towers one and two, rising 61 stories, are to include 682 multifamily apartments, a 615-room Hyatt Regency with over 100,000 square feet of meeting space and 264 serviced apartments.

The towers will be linked at the top by a sky bridge featuring an upscale restaurant and lounge perched 700 feet over the city. Tower three, which is anticipated to include 860 residential apartments, will soar 1,049 feet high, making it one of the tallest buildings in South Florida.

Construction on the Hyatt Regency Miami site is expected to begin in 2025.

The annual construction rent schedule is $1 million for year one, $1.25 million for year two, $1.5 million for year three, $1.75 million for year four and $2 million for year five. After the construction rent period closes, the minimum annual base rent paid to the city must equal $2.5 million or 2.5% of gross revenues. The rent is subject to annual increases thereafter.

Other monetary benefits include a $25 million contribution from the developer to the city’s affordable housing fund.

According to HRM Owner LLC, the project will create about 4,500 construction jobs and the number of permanent jobs post-construction will more than double from 350 currently to nearly 900.

The riverfront revival is expected to rise within five years, with the first two towers due by the end of 2028 and the third by the end of 2029.