Rivani asks $175 a foot for a Miami Beach building he bought at $383

Robert Rivani paid $62.5 million in 2024 for the 163,000-square-foot building at 1691 Michigan Avenue, which works out at $383 a square foot ^[8][1]. He told Fortune it was roughly 90% pre-leased before opening, at rents approaching $175 a square foot ^[13]. A little over two years of gross rent at that level equals the purchase price ^[2]. Filled at the asking rent the building bills $28.5 million a year, equal to 28.5% of the $100 million he puts on the redevelopment ^[3][4].

The amenity deck includes a Monarch Athletic Club performance center with a cold plunge and sauna, the club's first location outside California, a stem cell clinic, a longevity doctor administering peptides, a speakeasy that is private to tenants by day, an omakase restaurant, a concierge, a hospitality director and a valet ^[10]. Every one of those is a payroll line, and it recurs each year. "Our valet is supposed to be this shock-and-awe, Vegas-style valet," Rivani said ^[19].

Fortune does not say whether the $100 million figure includes the purchase. If it does, the all-in basis is $613 a square foot; if the construction sits on top of the price paid, it is $997 ^[5]. The Rockwell Group did the redesign ^[9].

Playboy is relocating its global headquarters from Los Angeles into a 20,000-square-foot penthouse on a 10-year lease ^[11]. At the asking rent that is $3.5 million a year and $35 million over the term, about 35% of the stated project cost, from a tenant taking 12% of the floor area ^[6][7]. Daymond John signed, as did Morgan Stanley, Wix, Raymond James, Comcast and Coldwell ^[12].

The 90% and the $175 are Rivani's figures. "We've not raised a penny to date," he said ^[16]. He built his career buying shopping centers after the 2008 crash and later moved into Miami hospitality ^[18], and he is targeting a fundraise in 2027, once the concept is proven, with members using Class X amenities across cities ^[17].

Fortune attributes the 75% decade rise in Miami's millionaire population at least in part to heat from California's Proposition 40, which it describes as a proposed one-time 5% wealth tax on billionaires ^[5][6]. The timing does not work. A proposal that has not passed cannot account for ten years of arrivals, and a one-off levy on billionaires does not reach millionaires. The moves in the account that carry dates and names are the 2025 sale of a Miami home above $100 million ^[1], Bezos's $230 million of property on Indian Creek Island ^[2] and Griffin's relocation of the Citadel headquarters ^[3]. Florida's lack of a state income tax predates all of them ^[20].

I would expect the return here to be set by the operating margin on the gym, the clinic, the restaurant and the valet. A building carrying $383 a foot of basis against $175 a foot of annual revenue is selling services as much as space ^[1][13]. The counter case is that if 146,700 square feet ^[8] signs at those rents and renews once, Rivani has priced something a conventional landlord cannot, and the 2027 raise gets underwritten off collected revenue rather than a pitch deck. Signed leases materially below $175 would undo that, and so would an amenity roster that needs subsidy to stay open.