Sunset Place Redevelopment Secures $149 Million Infrastructure Financing

A long-anticipated transformation of the Shops at Sunset Place has taken a significant step forward after Miami-Dade County approved a financing mechanism for $149 million in infrastructure improvements.

County commissioners approved the Downtown SoMi Community Development District on September 1, establishing a framework to fund critical infrastructure for the redevelopment. The district will finance water, sewer, utilities, street improvements, and property access enhancements, according to Carlos Villanueva, district sales manager at The Keyes Company's Coral Gables office.

Demolition of the largely vacant mall is now targeted for early 2027, a delay from the first quarter timeline previously anticipated. Villanueva said the project is moving forward at full speed despite the adjusted schedule.

The redevelopment will proceed in phases, with the first phase expected to be complete around 2029. This initial phase will include a condo-hotel and street improvements that will set the foundation for the broader development.

Planners envision replacing the struggling retail center with seven towers ranging from 12 to 33 stories. The mixed-use project will contain 1,513 residences, a 287-room hotel, and a 1,300-seat movie theater. County documents show the development will also feature 202,462 square feet of retail space and 65,892 square feet of office space.

Interest in the future commercial space is already building, Villanueva said, noting the project's potential to become the epicenter of South Miami. He anticipates restaurants with innovative concepts, cafes, boutique shops, home-design businesses, and higher-end specialty retailers will find success in the development.

The project is designed to address failures that plagued both Sunset Place and its predecessor, Bakery Centre. Both developments relied heavily on multilevel retail layouts that struggled to draw shoppers beyond the ground floor. The new design concentrates commercial spaces closer to street level, with residential and hotel uses above, creating a village atmosphere rather than a traditional mall environment.

The South Miami City Commission approved the initial site plan in October 2024. The development agreement includes a performance requirement tied to property value. The project must reach a $300 million valuation before 2034 to retain bonus height allowances permitting buildings up to 33 stories.

Villanuena expressed confidence the development will exceed that threshold based on the project scope and development team behind it. The redevelopment represents a shift away from traditional retail models toward mixed-use urban environments that integrate residential, hospitality, and commercial components at street level.