📊 Investors Hit Pause in 4Q23 per Burns + CRE Daily Fear and Greed Index. See the full report here.

Mercedez Benz’s Miami Mixed-Used Tower Is The Latest Luxury Branded Development

Mercedez-Benz is the latest luxury automaker to enter Miami’s branded condo marketplace.
February 28, 2024
Mercedez-Benz is the latest luxury automaker to enter Miami’s branded condo marketplace.
  • 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.
Key Takeaways

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.

CRE Daily is a digital media company covering the business of commercial real estate. Our mission is to empower professionals with the knowledge they need to make smarter decisions and do more business.
RECENT NEWSLETTERS
View All
California Banks Are Most Exposed to Commercial Property
April 12, 2024
READ MORE
CPI Hits 3.5%, No Rate Cuts Soon
April 11, 2024
READ MORE
These 5 Cities Could See Over 3% Apt. Rent Growth
April 10, 2024
READ MORE
Blackstone Buys Apartment REIT Betting $10B on Multifamily
April 9, 2024
READ MORE
Join 65k+
  • operators
  • developers
  • brokers
  • owners
  • landlords
  • investors
  • lenders

who start their day with CRE Daily.

Get smarter about what matters in just 5 minutes.