Coconut Grove has found its groove again

South Florida CEO, August, 2004 by Linda Rodriguez Bernfeld

Coconut Grove is regaining much of the luster it lost when South Beach and Coral Gables became the preferred hotspots for the trendy and hip. Today, the Miami neighborhood's new niche is one that appeals to those older than the beach crowd, but younger and hipper than those further south in the Gables.

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During the 1950s and 1960s, Coconut Grove was a gathering place for hippies and artists. As the years passed, the area capitalized on its reputation as "the groovy Grove" and became known for its arts festivals. By the early 1990s, with the strength of the Mayfair retail complex, and the opening of CocoWalk, the Grove became a hot, trendy spot where the young and rich played--that was, until South Beach emerged as the place to be seen.

"The Grove just lost its place. It didn't keep up," says Seth Gordon, president of the Coconut Grove Chamber of Commerce.

Today, the Grove is hoping to reclaim its spot by reminding everyone that it is the still the most laid-back and funky place to go for a good meal or to relax and be yourself.

Re-branding the Grove

After Sept. 11, South Florida tourism suffered, and so did Coconut Grove's hotels and shops. This winter, tourists poured back into South Florida and many chose the Grove to visit. Community leaders--from politicians to local merchants--are not taking the increased tourism for granted. They have banded together, pooled their resources and funded a $450,000 marketing campaign to promote the Grove.

The funds come by way of groups that were already spending money to market the area: the Coconut Grove Marketing Committee, the Coconut Grove Parking Trust, the five hotels in the Grove, the Greater Miami Convention and Visitors Bureau (GMCVB), the Coconut Grove Chamber of Commerce and the Coconut Grove Merchants Association.

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The campaign targets both tourists and locals with a Web site, radio ads, newspaper advertisements, bumper stickers, outdoor ads and collateral material. It was developed by Bruce Turkel, the executive creative director for advertising and branding firm Turkel. Among the materials Turkel produced is a brochure that passengers on the Norwegian Cruise Line ship "Dawn" receive when the ship docks at the Port of Miami. The Merchants Association developed a sightseeing tour for those cruise passengers. Other pieces of the campaign include coasters for restaurants and bars, and open and closed signs for retail stores. The signs announce, "Open for suggestions," or "Closed, but not closed-minded."

"The reason we're starting the marketing campaign, 'Get laid back', is we want to remind people what the Grove is all about," says Sylvano Bignon, of the Merchants Association. South Floridians are as important a target as tourists.

"We actually did preliminary focus research and found that a big audience they have lost over the last few years is the South Florida audience," says David Whitaker, vice president of marketing and tourism at the GMCVB. "The regional market is an important market, especially over the summer."

With hotels in the Grove already targeting the South Florida market in summer-time, they were happy to redirect marketing dollars to the campaign. "It dovetails into what we're doing and what the other hotels are doing," says John Murphy, general manager of the Mutiny Hotel, which is on South Bayshore Drive.

A Still-Sizzling Real Estate Market

While tourists and local shoppers may have shied away from Coconut Grove in recent years, real estate developers have jumped on the "new urbanism" bandwagon, eager to put up luxury residences within walking distance of shops, restaurants and offices.

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"It's one of the nicest spots in Miami," says Charles Treister, architect and principle in Coconut Grove-based Charles Treister Design and Development, Inc. Treister worked closely with his father, architect and artist Kenneth Treister, to design the Mayfair Hotel and other well-known Grove projects. "[Coconut Grove has] scenic beauty with the water and the trees. It's still attracting lots of people who want to live and work here."

The Grovenor House, a 32-story luxury condominium with 151 residences near local restaurant and raw bar Monty's on Bayshore Drive, began sales in June. By mid-July three-fourths of the building had sold--at prices averaging $450 per square foot.

"I got taken by surprise by the sales," Grovenor developer Ugo Colombo says. "My plan was to sell the building as it was built." Colombo was in the sales office one Saturday morning and was shocked when they sold $5 million in condos in 45 minutes.

"I think there is a demand for large units in the Coconut Grove and Coral Gables area," Colombo says. "There is no luxury building in that area."

While this building has sold faster than Colombo's projects in the Brickell area, he says there is little likelihood that he will do another project in the Grove. He does not see any other waterfront property that can still be developed.