MIAMI—Just how hot is Lincoln Road retail?Well, here's one way to look at it: StephenBittel, chairman of Terranova Corp, isworking on vertical expansion of properties on LincolnRoad to meet pent up demand.

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Lincoln Road is the premierretail street in the Southeast US, and demand forspace is virtually popping the ceiling off the top of thesehistoric structures, literally,” says Bittel. Terranova is workingto redevelop its buildings into multi-story structures that willmake room for anchor stores and activate streets next toLincoln Road with new retail activity.

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The 1654 building is among the structures that will undergoredevelopment. It sits on the hard corner of Meridian Avenue northof Lincoln Road. When the vertical expansion iscomplete, it will offer new storefronts that open to Lincoln Lane,activating that alleyway with new retailactivity.

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All told, the new 1654 building structure will offer over 23,000square feet on three floors. That includes a 8,767-square-footthird floor space with an outdoor seating option overlookingLincoln Road.

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On 723 Lincoln Lane, a building just north of LincolnRoad and abutting Macy's on 17th Street, Terranova willbuild three new stories totaling close to 45,000 square feet. Thatwill set the stage for an anchor store on the second and thirdfloors and retail spaces ranging from 500 to12,000 square on the ground floor.

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Terranova's Mindy McIlroy is charged withselecting the best retailers for the new space. She is convincedthe growth of the neighborhood into a world-class urban centerdemands the firm incorporate both commercial viability with thedistrict's existing historic beauty and charm.

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“Expanding our buildings and opening up retail toward LincolnLane is part of the ongoing urban growth in this neighborhood,while it allows us to accommodate larger-scale retailers that arecurrently shut out of Lincoln Road,” McIlroy says. “We plan to doit in a way that combines the best of retail withthe best of architectural design.”

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In addition to developing these multi-story projects, Terranovahas also redesigned the nearby 719-737 LincolnRoad building with brand new awnings and tenant signage.That's expected to be completed in January 2015. Both Lincoln Laneprojects have received approvals from the Miami Beach design boardand are slated to break ground in 2015.

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“The redevelopment of 1111 Lincoln Road was the key turning point,” AdamLustig, a partner in Miami-based Bilzin Sumberg,tells GlobeSt.com. Our client, Robert Wennett, had anincredible vision to transform a 1960s Brutalist style concreteoffice building into a mixed-use project with high-endretail. At the time the Apple Store was the only store onLincoln Road paying over $100 per square foot. 1111 LincolnRoad was able to command rents of $150 per square foot, which wasunheard of in Miami at that time.

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“The recent sale by Terranova and Acadia continued the trend ofincreasing property values and the influx of New York institutionalinvestors buying on Lincoln Road,” he continues.“Property values are now in excess of $4,000 per square foot andwill likely soon reach $5,000 per square foot.”

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