The reported renovation at 323 23rd Street in Miami Beach, the former Treehouse site, remains financially undefined. EDMTunes reported that work totaling $20 million may be underway, citing a walkthrough posted by Jamie Bederak, a commercial real-estate director. The report also said the property may be placed on the market. Available reporting does not establish whether $20 million refers to a construction budget, projected value or another figure, so it should not be treated as a confirmed sale price.
The site’s measurable financial context
Michael Freundlich bought the building for $3.25 million in April 2015 and listed it through Avison Young in March 2021, according to EDMTunes. The offering accepted conventional payment, Bitcoin or a combination, with the cryptocurrency intended for direct transfer to Freundlich’s digital wallet. The Real Deal reported that early offers exceeded $15 million, but no completed sale at that level is established here.
The assessment figures cited by LoopNet were $2,222,500 for the land and $2,453,487 for the land and building combined. EDMTunes also cited a 2018 Douglas Elliman listing that measured the interior at 4,322 square feet, or about 6,000 square feet with the patio. Those figures provide context for the property but do not establish the value of the renovation.
Licensing is a separate operating issue
A late-night license is not a guarantee
According to an Associated Press report dated March 15, 2023, a Miami-Dade circuit judge allowed Miami Beach to enforce a 2 a.m. alcohol cutoff for businesses with capacities above 100 in the separate South of Fifth neighborhood. The decision involved a different neighborhood and venue from 323 23rd Street, but it illustrates why a late-night license does not by itself guarantee 5 a.m. operations; local rules and geographic exceptions also matter. The broader nightlife market has also seen closures. Miami New Times reported that the separate Lincoln Road venue Finnegan’s Road closed in 2025 after 25 years, with its owner citing barricades, curfews and declining March foot traffic. That closure does not establish a connection to the renovation at 323 23rd Street, but it provides recent context for the operating challenges facing Miami Beach nightlife venues.
Licensing is a separate operating issue. EDMTunes reported that the property’s former nightlife operation was associated with a 4COP liquor license that allowed alcohol sales until 5 a.m. Florida generally limits alcohol service to 2 a.m., while Miami Beach has exceptions for certain South Beach venues. A Florida liquor-licensing guide places standard 4COP quota licenses on the secondary market at roughly $100,000 to $250,000 and lists municipal entertainment-permit fees of about $2,000 to $5,000 annually. Those general figures are not an appraisal of any license associated with 323 23rd Street, and a license alone would not establish that a future operator could serve alcohol until 5 a.m.
What the address has been used for
The building dates to 1925. It opened as Groove Jet in February 1994, operated as Rain from 2001 to 2004, and became Treehouse in early 2011, according to EDMTunes. Treehouse had capacity for roughly 440 patrons, three bars, and as many as 20 VIP sections. The venue announced its closing weekend for Aug. 4 and 5, 2023, after Danny Tenaglia performed there on March 24 of that year.
The address also has a documented electronic-music history, including a Sasha and John Digweed appearance on March 14, 1999, and a five-hour John Digweed set at Treehouse on March 28, 2015. Those historical bookings help identify the site but do not establish its future use or value.
The next use has not been identified
The two former rooms have reportedly been opened into one combined space during the renovation. A former Treehouse Instagram account was renamed Rain and lists 323 23rd Street in its biography, but that change does not establish that Rain will return. No successor club, operating concept, or sale valuation has been established in the available reporting.
