Friday, October 14, 2011

Is LVMH investing in Craig Robins? ... by gimleteye

Craig Robins was featured in the Miami Herald again; art collector, visionary, and entrepreneur who put South Beach on the map, then the Design District. The Herald never fails a polished view of city prospects through Robins, whose most notable achievement was to secure the world's most important contemporary art fair, Art Basel, in Miami Beach.

A more critical view would include an analysis of how the economic crash seriously crimped tenants in the Design District. Although there are a few bright spots, many are struggling to survive. It is a far cry from the fever of the real estate bubble when European retailers and galleries rushed to the Design District only to fade when the bloom fell from the rose.

Hermes will be building in the Design District soon ("a blow to Bal Harbor") according to recent reports, but there is also an unconfirmed report that the largest luxury retailer in the world, LVMH, is more than a future tenant.  French billionaire Bernard Arnault knows Miami casino plans are likely to move forward under a Republican legislature led by Gov. Rick Scott. Scott's first trip after being elected in 2010 was to Las Vegas. (How else to deliver his promise of 700,000 jobs but through construction for gambling?)

LVMH will inhabit prime real estate inside whatever casino materializes in Florida. That means uncertainty for the Design District. On the other hand, thanks to Brazil and other economies in South America, Miami's future is rosy as a blushing bride. If Robins did sell a significant portion of his equity to LVMH that would be another example of exquisite timing. 


Geniusofdespair said...

Carlos Gimenez says we are going to stop at 3 casinos in Miami. Is that the CITY of Miami? I know that Sunny Isles Beach wants in on the action -- a developer already has a bundle of property waiting.

Katy Sorenson brought up a good point. She said after you have the 3, others will come and say it isn't fair -- as has been done before in Miami Dade county....3 today 10 tomorrow.

I don't care much one way or the other about casinos but I do hope the community thinks about what they are doing, that this sort of gambling will change the fabric of the city...and most of the profits will be distributed throughout the State of Florida. No problem with getting the State to approve it.

Anonymous said...

Miami is going to be the Atlantic City of the South. I'm packing my bags.

Anonymous said...

If true, a coup for EOM.

Anonymous said...

New casinos will take profits away from existing inland ones, which will then be cannibalized by even newer casinos on the beach. In the end you will have a glut of worthless windowless buildings.
Jobs don't pay enough in this city to support permanent residency. You can only attract so many out of town suckers.

Anonymous said...

Tenants in the Design District struggle. Rents being pushed up. $50 to $60 per sq foot. Sales sluggish.

Residents and a hotel is needed.

Greedy landlords are not needed.

Anonymous said...

The only place with higher foreclosure rates than Miami was Las Vegas. We should definitely look to Vegas for answers.

Anonymous said...

Only three casinos? We already have more than that at the former dog tracks, horse tracks, jai alai frontons, cruise ships to nowhere.

The mega casinos will be the tipping point. Like billboards beget more billboards beget murals, beget super-murals, beget LED flashing billboards.

Anonymous said...

Rick Scott bald

Craig Robbins bald

Coincidence? I think not!