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\n A rendering of the Magic City Innovation District, filed with the city of Miami in 2019\n <\/p>\n
The development, which will be built in partnership with Plaza Equity Partners, also includes plans for a commuter rail station, 2,600 apartments, a hotel and retail space. Archer Aviation<\/a>\u00a0also tapped Dragon Global to develop a vertiport site<\/a> in the district for its fleet of\u00a0air taxis, which is expected to begin testing this year.<\/p>\n \u201cWe really envision this being a campus to match both leading AI companies with leading asset management firms and building an evolved community,\u201d Zangrillo told Bloomberg.<\/p>\n The project\u2019s first phase involves the construction of office space and a 25-story tower called Sixty Uptown with 349 rental units.\u00a0<\/p>\n Newmark<\/a>\u2019s Anthony Orso<\/a> will lead marketing efforts for the district, according to Bloomberg.\u00a0<\/p>\n The site, which is in one of the fastest-gentrifying areas of Miami, has a special area plan designation, which enables the construction of large-scale projects, and is in a federal\u00a0opportunity zone<\/a>, allowing investors to secure tax breaks on capital gains for backing the project.<\/p>\n Zangrillo first revealed plans for the project in 2012 and spent the following five years piecing together the assemblage. In 2019, he received approval from the Miami City Commission.<\/p>\n Back then, plans for the project called for 2,630 residential units, 432 hotel rooms, 2M SF of office space, 350K SF of retail, and\u00a04 acres of public open space. It had an estimated cost of $1B<\/a>.<\/p>\n The\u00a0Magic City Innovation District\u00a0now seeks to capitalize on the wave of AI firms opening\u00a0or expanding offices<\/a>\u00a0in Miami. Tech companies accounted for 37% of the 918K SF of office leases signed in the first quarter, according to a report<\/a> by Avison Young<\/a>.<\/p>\n \u201cI had a vision about 14 years ago that Miami was going to be the capital, or the future New York City, for technology companies and asset managers from around the world to converge,\u201d Zangrillo said.<\/p>\n The project stalled when Zangrillo got caught up in the college admissions scandal known as Operation Varsity Blues. After his daughter was rejected from the University of Southern California, Zangrillo allegedly bribed school officials and paid an employee to take classes on her behalf to increase her chances of being admitted.<\/p>\n Zangrillo was arrested in March 2019 and charged with fraud. He pleaded not guilty,\u00a0then was pardoned by President Donald Trump<\/a> in 2021 before he was set to stand trial.\u00a0<\/p>\n