Just before the COVID-19 shutdown, PROFILEmiami had the opportunity to meet Gil Dezer, CEO of Dezer Development, at the Residences by Armani/Casa grand opening party in Sunny Isles Beach. The building, which was developed in partnership with Related Group, was unveiled in full Miami-style with the grandeur you would expect from the two development firms: an Armani Summer Collection Fashion Show and a live concert by Mr. 305 himself, Pitbull.

The developers worked with fashion icon Giorgio Armani, architect Cesar Pelli and landscape architecture firm Enzo Enea to design the project. It is the first Armani-branded building in the U.S and joins the ranks of luxury fashion collaborations like Fendi Chateau. We were able to catch up with Gil during the shutdown to get inside the mind of the developer whose firm has a long history of building residences branded with leading luxury, automotive, and fashion brands. If the grand opening of Armani/Casa says anything about brand standards, then we can’t wait to see what Dezer has in store next for Miami.

PROFILE: Where did the idea to do branded, luxury condo buildings come from? 

Gil Dezer: In 2001, we secured a licensing deal with the Trump Organization to build branded buildings with the Trump brand on it. That is when we realized putting a brand on a building is much more powerful than simply giving it a name.

PROFILE: Branded residences command anywhere from 20-35% of a premium against comparable non-branded product. What kind of premium did Porsche/Armani command during pre-sale and have they retained their value for re-sale? 

GD: Our goal when using a brand is not to try and maximize the value per square foot, but to enjoy a faster sellout in comparison to our competitors. Our closest competitor sold 100 less units than us in the same time period.

PROFILE: What are some of the differences between working with a car brand such as Porsche and a fashion brand such as Armani? 

GD: Each brand has their own motivation for building a branded tower, and each has a slightly different process. Porsche Design wanted the car to be “present” in the building, so we [used] a lot of leathers and woods and black chrome, as you would find in the automobiles. Meanwhile, Armani has a lifestyle aesthetic which is translated in the common areas as well as the furniture line that Armani/Casa manufactures.

PROFILE: What were some challenges during the design phase while working with a brand that has never lent its name to residential real estate?

GD: There was a lot of education from both sides. From the side of Armani, they taught us the history of the brand, design philosophy, reasons for certain aesthetics and the overall look. The two brands [Armani and Porsche] are completely distinctive in their styles, so it was great to be able to learn from each one.

PROFILE: Does using a brand help mitigate unforeseen risks such as seasonal/cyclical changes in the market?

GD: Absolutely. The main differentiator between having a brand on a building is the attention it receives in comparison to the neighboring properties. This proved to be true even during Covid-19. We still receive an extraordinary amount of attention to our buildings.

PROFILE: How are the last several units in Armani moving?  

GD: The market has slowed during COVID-19, but we are proud to report that there have been six new sales during this time. Four of them took place in the last month.

PROFILE: Cost control and specification analysis is also critical in a brand-forward environment, when design, service and security charges can be easily driven up. Are your design costs higher when collaborating with a high-end brand and how did you manage that process?

GD: Costs are absolutely higher. For starters, the construction specifications for these buildings are above and beyond. In Trump International Hotel, we have floor-to-ceiling glass, private elevators, expensive kitchens and baths with automatic toilets that make the units more expensive to build. But the real cost difference appears in the lobbies and common areas; Armani/Casa has almost 40,000-square-feet of common areas with high-end finishes and furnishings by Armani. That’s where the competitors beat me. They make more money because no one has even gone as crazy as we did on the finishes. However, the overall product blows away anything else on the market, and we are sure of that.  

PROFILE: Did lenders look at the project any more or less favorably taking into consideration the brand association? Will they in the future after you paid off your loan so quickly for Armani?  

GD: I have been doing branded buildings since my partnership with the Trump Organization in 2001. Some said I was the first developer to do this – I certainly was in South Florida. By the time we get lenders involved in the process, we have usually experienced a high volume of pre-sales which is what lenders are looking for, along with the strength of the developer.

PROFILE: What did you need to keep in mind when choosing the right operator to provide that high-touch level of service? 

GD: After many years in Miami, I noticed there was not a management company that offered lifestyle services at a hotel service level with food and beverage management. My company also owns and runs hotels, so we have experience in top quality management. We simply opened up a division of our hotel group to start managing condominiums. That allowed us to build restaurants in the buildings that are not open to the public.

PROFILE: What signature features will Armani Residences be remembered for like Porsche is for its car elevator? 

GD: This lobbies and common areas are simply amazing. Second to none.

PROFILE: Market differentiation is one advantage of using a well-established brand, especially if you are trying to hit new price records. What is the next goal or milestone you would like to set for Dezer Development?

GD: We have several waterfront lots and amazing sites around Miami. We have a lot of great things coming up – stay tuned.

By Katya Demina

Check out PROFILEmiami’s coverage of the Grand Opening of the Porsche Design Tower

Check out PROFILEmiami’s exclusive Tour of Porsche Design Tower

Check out PROFILEmiami’s coverage of Residences by Armani/Casa paying off their construction loan

Check out PROFILEmiami’s coverage of Andrea Bocelli’s Evening Under the Stars for the Children of Haiti at the Residences by Armani/Casa