Chanel spends $ 40 million at Miami flagship store
Chanel is banking on its founder’s slogan: Fashion changes, but style persists.
The French luxury fashion company is spending more than $ 4,000 per square foot to build its flagship store in the Miami Design District, sources said. The real deal. Based on its roughly 10,000 square foot space, that means Chanel is investing at least $ 40 million in construction.
This is the equivalent of the combined sales of over 5,000 Chanel flap bags.
TRD previously reported the location of the store across from Gucci at the entrance to Paradise Plaza on 41st Street in Miami. Gucci is on the west side and Chanel will open on the east side.
New York architect Peter Marino, who has designed stores for Chanel around the world, is also designing the Miami location. The tiered store is expected to open in time for Art Basel in early December, sources said.
Marino is also involved in the redevelopment of the Raleigh Hotel site that Michael Shvo and his partners are planning in Miami Beach.
The owner of Chanel in the Design District is a partnership between Craig Robins’ Dacra, the partner subsidiary of LVMH L Catterton Real Estate and Brookfield Property Partners. Dacra and L Catterton each own nearly 39 percent of the Design District, while Brookfield owns 22.5 percent.
Robins, CEO of Dacra, declined to comment. Chanel and Marino did not immediately respond to a request for comment.
The Design District has long sued Chanel, which has just one other store in Florida in rival Bal Harbor Shops, a growing high-end open-air mall. Chanel has been a tenant there since the early 1990s.
Chariff Realty Group broker Lyle Chariff, who is not involved in the Chanel lease but is active in the Design District, said Chanel is likely looking to set itself apart from its competition and stay consistent with its brand. It’s “all about design and image” and the race to become the next “masterpiece” in the design-driven neighborhood, he said.
The high price per square foot of construction can be attributed to rising costs and the limited availability of specialized materials and construction labor, as well as ancillary costs such as architecture and design. , said Chariff.
“If they had entered this market five years ago and were the first, it would have [cost] much less because the standards were lower, ”he said.
The luxury retail market has thrived in South Florida throughout the pandemic. In the Design District, Louis Vuitton is working on a larger men’s store, while Marc Jacobs, Amiri and a handful of restaurants are under construction.