RH Announces Proposal to Reimagine and Restore One Ocean Drive, Miami Beach

RH (NYSE: RH), the leading global design and hospitality brand, announced its intention to reimagine and restore One Ocean Drive, Miami Beach, submitting an RFP and formally entering the bidding process for a long-term lease of this iconic public property.

RH Chairman & CEO Gary Friedman has outlined the Company’s vision for this historic property in the letter below:


One Ocean Drive, Miami Beach.

Arguably one of the best addresses in the world. Undeniably the best opportunity to make certain it becomes so.

We the people of Team RH are both humbled and inspired to be considered. We understand the gravity of such an opportunity, and we hope to earn the right to demonstrate our ability to create something extraordinary on this unique piece of public land. Something that hasn’t been seen before, because it hasn’t been done before. Something that inspires the local community and enlightens a global audience.

Our vision proposes:

1. A dramatic reimagination and restoration of the site to its historic origins as a public park, with two beautifully landscaped beach promenades providing direct public beach access and opening up significant view corridors from Ocean Drive.
2. Replacing the existing 77,000 square foot surface parking lot with a 94,000 square foot at-grade public park by building a subterranean parking structure and an elevated podium that will eliminate all visible surface parking.
3. Creating a 17,000 square foot Public Sculpture Garden on the elevated podium with views of the Atlantic Ocean.
4. Transforming and expanding the green space from 8% of the surface area to 82% inclusive of green roofs.
5. Reducing late-night noise and traffic by offering low impact, high end uses with limited hours of operation.
6. Designing energy efficient, green roof buildings with brise soleil non-reflective screens covering the entirety of the project’s glazing will make a meaningful contribution to the city-wide effort to enhance resiliency and protect the natural habitat.
7. Proposing two low rise, small building footprints that only cover 16% of the 180,000 square foot site.

We expect to make a total capital investment in the range of $150 to $170 million, inclusive of an estimated $50 million in public benefits. The Company is seeking a 30-year lease term with a starting base rent of $7 million, increasing a minimum of 3% annually, resulting in an average base rent of $11 million, or $333 million over the term of the lease.