The Miami City Club, located at the top of downtown’s Wachovia Financial Center, is shutting down Friday.
An existing tenant in the building, Optima Ventures, will be taking the entire 15,552-square-foot, 55th floor, which the City Club had occupied.
Optima Ventures is the real estate arm of Optima International, the U.S. operation of a private, global company invested in oil, gas, telecommunications and manufacturing in Eastern Europe and the U.S., said leasing broker Don Cartwright.
In a statement, Cartwright said: "In the past couple of years, there has been a proliferation of new restaurants and amenities in Miami's downtown. Additionally, Wachovia Financial Center is in the midst of bolstering its property with new shops, restaurants and meeting areas. As such, the need and interest in an exclusive and private club has waned considerably."
Cartwright said the landlord worked with the tenant by deferring rent and in other ways but the outlook was not good going forward.
"The club was not in position to pay rent, pay their employees and to function as a business, to buy goods and services," Cartwright said.
News of the closure was a surprise to some who have booked events.
GM Nancy Laurie broke the news to Morningside Mortgage Corp. President Grant Stern, a club member, and Peter Zalewski, a nonmember who booked the club Tuesday for a seminar for his company Condo Vultures.
In 2006, the Havana Club opened within the Miami City Club with a $5 million renovation, but the space subsequently reverted back to just being the City Club.
A letter about the closure that was sent to members says, "When we attempted to revive the club after the demise of the Havana Club, we had high expectations that the demand and consistent usage of Miami City Club would be supported by private memberships. However, this has not been the case as our membership as well as Club usage has not and apparently cannot reach a level that will sustain the Club’s business.
"In spite of every effort made by our management team and the continued support of the building’s ownership, we are no longer in a financial position to maintain operation of the Club. As you will see in your January statement, you have not been charged dues, the only charges are for food and beverage consumption during the month of January."
Club members who stored cigars onsite were told to stop by between noon and 7 p.m., Tuesday through Thursday, or to make arrangements by calling (305) 373-2600.
The City club hasn't been the only private club in downtown Miami.
Ken Henson, manager of the 14,000-square-foot Bankers Club of Miami in One Biscayne Tower, said the Bankers Club has a loyal membership and strong bookings that has allowed it to thrive.
"We have done very well," he said. "But we have a different product. I think the City Club hit a bump when they changed to the Havana Club."
He said his club will not go the way of Miami City Club. He said the Bankers Club, located on the 14th floor of One Biscayne Tower, has weddings booked through the end of the year and plenty of other events scheduled going forward.
Henson said, "We are the oldest club in the area and as of today we are still here."
The Bankers Club has a reciprocity agreements with more than 10 other clubs from London to Quito, Ecuador, and as nearby as the Phillips Point Club in West Palm Beach, which is owned by The Breakers Palm Beach resort company.
In Fort Lauderdale, the Tower Club is part of the ClubCorp network that includes 200 clubs.
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