Midtown Development purchased the 10-acre site for $65.5 million in 2020 after a previous owner failed to execute a 2019 redevelopment plan.
The planned demolition of an abandoned South Miami landmark has hit another delay.
The redevelopment of Sunset Place—a once-vibrant outdoor shopping center that had been scheduled for teardown in early 2026—remains in limbo.
Development firm Midtown Development purchased the 10-acre site for $65.5 million in 2020 after previous owner Federal Realty Investment Trust failed to execute a 2019 redevelopment plan.
Midtown’s ambitious new master plan, designed by London-based architectural firm Heatherwick Studio, was approved by the South Miami City Commission in 2024.
The proposal replaces the traditional mall with seven towers ranging from 12 to 33 stories, featuring 1,500 residential units, a hotel, movie theaters, and 150,000 square feet of retail and dining.
So what’s the hold-up?
The city of South Miami has been awaiting final approval from the Miami-Dade County Commission for a special taxing district and a community redevelopment agency that will help finance the $150 million infrastructure improvements needed for the new development plan.
These improvements include new water and sewer lines, an improved sewer pump station capacity, extensive landscaping, and the extension of downtown South Miami’s sidewalks and street grid, according to South Miami Mayor Javier Fernandez.
The new development will make the landscape function more like part of an up-and-coming neighborhood rather than a closed-off mall.
Sunset Place, a once-vibrant outdoor shopping center scheduled for teardown in early 2026, remains in limbo. (Google Earth) 
Midtown’s ambitious new master plan, designed by London-based architectural firm Heatherwick Studio, was approved by the South Miami City Commission in 2024. (Shops at Sunset Place) A formal agreement with the county was finalized in mid-July, Fernandez said on July 17 in a Miami Herald report, and the County Commission is scheduled to take a final vote in September. Once that agreement is approved, Midtown Development will be able to secure financing for the project.
The megaproject will be built in phases over up to 20 years, and Midtown Development is required to submit detailed site plans for each phase for city approval.
One strict city requirement of the plan is that developers must build the streets and sidewalks throughout the property first as opposed to extending it slowly throughout each phase.
“Over three years, we’ve been working really hard to be a positive force for the property’s transformation,” Fernandez said. “The framework is now in place for them to begin.”
In an email statement to Miami Herald, Midtown Development founder Alex Vadia affirmed the company’s commitment.
“Tackling Downtown South Miami’s significant infrastructure needs is an effort that will serve this community for generations to come. We look forward to continuing this work and sharing more with the public as our plans progress,” Vadia wrote.
However, the few shops that are still open on the property remain unsure whether Sunset Place will be demolished all at once, or in stages.
“We’re all sitting here waiting for the shoe to drop,” Joaquin Ortiz, founder of the mall’s Tea & Poets, told Miami Herald. “I am interested in opening up a second business or moving elsewhere in the mall. But how long can we stay in the mall? I’m kind of at their mercy.”
The cafe has just celebrated its 10th anniversary, and Ortiz has attempted to meet with the company’s principals multiple times for further details but has received no response.
Phase 1 of the redevelopment was expected to be completed by 2029, but with the delay, it is unclear if that is still the case.
The new development will make the landscape function more like part of an up-and-coming neighborhood rather than a closed-off mall. (Earth Pixel LLC / Adobe Stock) 
The megaproject will be built in phases over up to 20 years, and Midtown Development is required to submit detailed site plans for each phase for city approval. (Summer Scheer) 
Today, the site is mostly empty, anchored only by an AMC movie theater and a Barnes & Noble following the recent closure of its L.A. Fitness. SUMMER SCHEER From hot spot to ghost town
In its heyday, Sunset Place was bustling with locals, tourists, and students flooding their way through the open-air center to visit popular stores such as Virgin Megastore and GameWorks.
“Sunset Place back in the day was the hot spot,” South Miami resident Summer Scheer said. “Everyone was just out at Sunset Place in middle school. That was the place to be.”
Today, the site is mostly empty, anchored only by an AMC movie theater and a Barnes & Noble following the recent closure of its L.A. Fitness.
“You feel uncomfortable walking through,” Scheer explained. “It seems like there's no demand, and people would rather not be in that area. They'd rather go to Dadeland Mall and shop there.”
This demolition marks the third time that a monument at 5701 Sunset Drive has been knocked down. Prior to Sunset Place being constructed in 1998, the property was home to a bread factory named the Holsum Bakery and a retail and office complex called Bakery Centre.
Miami’s luxury boom
However, the inevitable demise of Sunset Place for a high-density, mixed-use community could be mirroring a larger economic shift across South Florida.
According to Realtor.com® data, South Miami’s housing market has skyrocketed. In 2019, the median home listing price was $700,000. Today, that average has increased by almost 50%, rising to $1,049,000.
“Home prices in South Miami have risen dramatically over the past seven years,” Realtor.com senior economist Hannah Jones says. “In 2019, a typical single-family home in the area was priced just under $800,000. Today, that figure has climbed past $2 million.”
This isn't just inflation; it’s a structural shift in who is moving to South Florida. Miami is no longer just a vacation town—it has transformed into a primary hub for ultrawealthy domestic and international buyers.
“A decade ago, many luxury purchases were second homes that sat empty for much of the year,” luxury agent Lourdes Alatriste of Douglas Elliman said. “Today, many of these buyers are relocating their families and businesses, making Miami their primary residence. That has completely changed what people prioritize.”
Buyers are now looking for homes that have much larger floor plans, wellness amenities, dedicated home offices, walkable neighborhoods, and proximity to schools, restaurants, and shops that fit into their lifestyle.
As a result, traditional enclosed malls built around midtier retail brands are giving way to luxury, multiuse destinations.
“Traditional enclosed malls were designed around retail, but today's consumers are looking for destinations that combine residential, dining, hospitality, entertainment, and outdoor public spaces into one experience,” Alatriste explained.
In many neighborhoods, the development of private clubs, luxury retailers, and boutique fitness studios is becoming the standard.
Traditional enclosed malls built around midtier retail brands are giving way to luxury, multiuse destinations. (Summer Scheer) 
This demolition marks the third time that a monument at 5701 Sunset Drive has been knocked down. (Google Earth) 
In 2019, the median home listing price was $700,000. Today that average has increased by almost 50%, rising to $1,049,000. (Felix Mizioznikov / Adobe Stock) Locals are priced out
This shift leaves longtime residents facing a changing city identity. Many locals are being priced out of South Miami, moving south to more affordable enclaves like Kendall, Westchester, and Homestead, according to Alatriste.
For locals wishing to stay, condominiums remain the last accessible entryway. While the median condo price in South Miami has risen from $247,000 in 2019 to $381,500 today, it still offers an affordable way to remain in their hometown.
"While South Miami is trending in the same direction as Miami Beach, toward more luxury-oriented development, it hasn't lost its affordable segment entirely," Jones says. "Condos remain the area's clearest foothold for buyers who aren't chasing a luxury single-family home.”
For locals such as Scheer, watching the mall fade brings mixed emotions.
“A part of me feels like my childhood is dying,” Scheer said. “We all just want to see that area be busy and lively again. .... But if it’s going to continue to be delayed or if it’s going to be empty land for a long time, it definitely won't be the best for us locals who grew up with that area because we just have so many fond memories, and to see it being unused and sit like that is disorienting.”
Alatriste agreed that the execution of the project will be the key to its success.
“The challenge for developers will be creating something that respects the neighborhood's character while bringing new energy and investment to the area,” Alatriste said.