The early modern history of South Beach, Florida goes back to 1870.  In that year, the Lum brothers, Henry and Charles, purchased some land to be used for coconut farming.  These 165 acres soon became known by the family as “South Beach”.  The first house was built on the beach in 1886 and the Lum brothers stayed for a few years.  In 1894 the Lums left the island and John Collins came in and farmed on the land also.

People nearby began to take notice of the land in 1912 when the Lummus brothers, businessmen from Miami, bought 400 acres with the plans to build modest homes on the beach.  Collins began building a bridge in 1913 from Miami to Miami Beach, but funding fell through and it was put on hold for some time.  Carl Fisher came to the beach in 1913 with his own plans for the Beach, namely to make it into its own separate city from Miami.  Fisher later helped Collins finish the Collins Bridge, and in 1915 Collins, Lummis, and Fisher all worked together to incorporate the Town of Miami Beach.

It wasn’t until 1920 that more residents began moving in.  Millionaires such as J.C. Penny and Harvey Firestone bought and built oceanfront mansions on South Beach real estate, and President Warren Harding stayed at the Flamingo Hotel.  Famous residents like these created a stir about the area among the rest of the country.  Soon the area was filled with well-to-do individuals, and the city became almost exclusively wealthy.  Those that could do so began moving out of their Miami homes into South Beach real estate, and the area flourished.