The Secret To Managing Complex Developments? A 'Vociferous Allegiance' To Results For The Client

Ocean Terrace is a 600K SF mixed-use project taking shape in Miami Beach’s North Beach. Located on 350 feet of oceanfront property, it will include a 52-unit condo tower, 24 resort residences, a 42-room five-star luxury hotel and curated retail.  

Ensconced in a newly opened 5.5-acre park designed by landscape architect Raymond Jungles, the project includes interiors designed by the firm of architect Robert A.M. Stern for co-developers Witkoff and Ocean Terrace Holdings.

It is also a career high point for Sandor Scher, the founder of Miami’s Claro Development and the co-founder of Ocean Terrace Holdings with Alex Blavatnik. 

Bisnow spoke with Scher, whose firm has provided development services and construction management expertise to owners, developers and operators throughout the state of Florida and across the Southeast for more than 20 years, often on complex and high-end projects. He credits his 25-person firm’s success to treating every project “like it is our own.” 

Bisnow: Tell us how you got involved with Ocean Terrace. What does the project mean for Claro? 

Scher: In 2009, I was in North Beach overseeing the development of a project designed by acclaimed architect Rene Gonzalez. During the project, I stumbled across Ocean Terrace, an incredible oasis located directly to the north. The northern block had architecturally significant buildings that were underutilized, and I started to conceptualize what it could be.  

Fast-forward to 2014, when Alex and I began to assemble 12 parcels from nine different owners over the course of two years. The vision for Ocean Terrace comes from working with some great placemaking and hospitality pioneers, like Andre Balazs, Nick Jones and Alan Faena.  

Ocean Terrace is an exercise in iconic placemaking, and it has been rewarding to have such a great reception from the market. It is a significant project for Claro because without the support of the amazing people at our firm, it would have been just a great idea, and an idea without execution is just a thought.

Bisnow: What was South Florida like when you arrived more than 20 years ago from New York, and how has it changed? What were some of your first projects?

Scher: The development scene was coming out of the cowboy phase of the ’90s, and the building departments included a cast of characters that could be featured in movies. Miami Beach operated like a small town despite some very significant projects.  

The level of professionalism has improved dramatically with an influx of internationally acclaimed architects and a local talent feeder system with the University of Miami School of Architecture and their MRED+U program, for which I am an advisory board member. Also, the quality, sophistication and professionalism of the general contractors in this market have improved greatly from those early days.   

The first hotels that I worked on were The Standard and The Raleigh for internationally acclaimed Andre Balazs. In 2009, we oversaw Soho Beach House, working closely with Nick Jones, and then in 2010, I started working with Alan Faena on the Faena District.

The Standard elevated the spa membership model and proved that “if you build it, they will come.” The Raleigh was reinvented as an international destination for the sophisticated soiree with regulars like Madonna, Karl Lagerfeld and Zaha Hadid all coming together. Faena was more urban intervention than a project and pioneered bringing the world’s best architects to Miami Beach.

All of these projects represented turning points in both my career and collective experience. They completely changed how projects were developed in South Florida.

Bisnow: What sets Claro apart in the crowded South Florida construction and development scene? 

Scher: It’s our attention to detail and focus on being proactive. Managing complex development projects requires experience, planning, exceptional communication, problem-solving and strong relationships. Our teams treat every project like it is their own. 

The model that other firms implement is different from what we do. We don’t rent people, limiting results to being only as good as the person on the project. I don’t even think the other consulting firms in this sector are in the same business that we are. They are consultants, while we are integrated development team members.

Finally, I am personally involved in all of our projects. I bring my experience, problem-solving acumen and relationships to every engagement.

Bisnow: Why did you choose this particular business model? 

Scher: Claro was founded with the singular goal of providing on-demand development and project management services for clients with the urgency, attention to detail and focus on solutions that the most demanding in-house development teams expect within their organizations. 

Before founding Claro, I was overseeing projects all over the country and struggled to find competent representation. The void in outsourced expertise was the catalyst for starting Claro. I saw an opportunity to create a firm that could deliver our ethos with a vociferous allegiance to results as an on-demand resource for clients. 

Bisnow: How does Claro’s emphasis on risk management and leadership skills benefit clients? 

Scher: Those are the two core pillars that drive everything we do at Claro. Every service and action can be distilled within those skill sets.  

There are thousands of decisions made throughout the life cycle of a project, and each one may not have an easy or clear answer. It is up to us to utilize the best information we have, our experience and relationships to provide guidance. 

Bisnow: How has this approach worked for Claro?

Scher: You can see it in our extensive portfolio, which includes many repeat clients, and all of our work is through referrals. 

Bisnow: What trends are you seeing and how is Claro keeping pace with them?

Scher: We see more computer-aided plan review and conflict resolution. This is significant because construction conflicts and permits are the lion's share of execution risk. Anything we can do to reduce the permit and construction duration is essential. We are early adopters of the technology, and we are helping to refine it for our projects.

Bisnow: Where do you see South Florida development headed? What are your plans for the future?

Scher: I see South Florida development continuing to charge forward. I remember talking with Related's Jorge Perez, who wisely said that compared to other great cities in the world, Miami is truly in its infancy. Through that lens, and knowing that it takes decades for a city to blossom, there is plenty of runway.  

My plans for Claro in the short term are to finish the iconic Delano Hotel for Cain International and the Royal Palm Hotel renovation for Park Hotels and Resorts. I am also excited to break ground at Ocean Terrace. Looking further into Claro’s future, we want to continue working with great people on great projects while growing our amazing team. Life is short, and we need to take advantage of every moment.

This article was produced in collaboration between Claro Development and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.