- Mercedez-Benz is venturing into Miami’s luxury condo market with its first North American tower, “Mercedez-Benz Places,” marking a growing trend of luxury automakers partnering with developers.
- The 67-story mixed-used tower will offer a range of units, amenities, and spaces, with construction expected to complete in 2027, highlighting the increasing appeal of luxury-branded real estate developments.
- Mercedez-Benz Places joins the ranks of other automaker-branded towers in Miami, reflecting a broader industry move where branded residences command significantly higher prices than non-branded counterparts.
The German car company is lending its name to developer JDS Development Group’s new condo in Bricknell, Miami’s financial district. Construction of the 67-story mixed-used tower, called Mercedez-Benz Places, is underway, with delivery slated for 2027.
A first time for everything: The Miami condo will be the first North American tower to get Mercedez-Benz branding. However, in recent years, it’s the fourth partnership between a developer and an automaker for a luxury condo tower to be announced in Miami.
The details: The 2.5-million-square-foot condo being built at 1 Southside Park will have units ranging from studios to three-bedroom condos, a hotel, 200,000 square feet of office, and 130,000 square feet of amenity and hospitality space.
- Prices for the units start at $550,000 for studios and a maximum of $4 million for a three-bedroom space. Pricing details on the tower’s penthouses have not been shared yet.
- New York-based ShoP Architects designed the tower, but JDS Development Group and Mercedez-Benz said the automaker refined the design through its “Sensual Purity” design principles.
A luxury-branded hot spot: Mercedez-Benz Places will join three other automaker-branded towers in Miami. Porsche Design Tower is a 132-unit project from Miami-based Dezer Development that opened on Sunny Isle Beach in 2017. Dezer also announced plans last year to build a 216-unit Bentley Residences tower next door due to the success of the Porsche project.
- Additionally, the Aston Martin Residences sold this month, with the purchase of the 9,600 square foot and 391-unit penthouse coming with a Riverwalk. Miami-based G&G Business Developments has been building the waterfront tower in downtown Miami since 2017.
Why it matters: Branded residences have become a differentiator for developers announcing luxury properties. Compared to non-luxury-branded residences, developers can ask for 31% more on average, with prices at a significantly higher rate, per The Real Deal.
What’s next: Mercedez-Benz Places in Miami is the second-announced real estate venture for the automaker. Mercedez-Benz announced plans in January for a 1,118-foot tower in Dubai with 150 apartments, which start at $2.7 million.
Look for luxury-branded real estate developments to continue in the years ahead. According to Savills, globally, the number of luxury branded residences increased by 230% between 2011 and 2021. In the U.S., there were 38,900 branded residences across 200 developments at the end of 2022, a 40% increase from 2012.
