If you've walked south on Palm Avenue lately and wondered why the storefront at 69 S. Palm Ave sits behind fencing where a family-run pasta counter operated for 36 years, you're not imagining a gap in your dinner rotation. Caragiulos originally planned to close there in late October 2025, but extended service a few weeks. If you've also noticed a Japanese lounge with cherry blossoms painted across the ceiling on Fourth Street, that's Hanami, which opened after Tsunami closed its Central Avenue location.
Two of downtown's most recognized restaurant addresses got displaced within months of each other, for completely different reasons, and both landed within walking distance of the same intersection: Ringling Boulevard and Fourth Street. That's the part worth understanding if you live here, because it's quietly rewriting where downtown eats dinner, and it has nothing to do with which kitchen got better reviews.
The Building That Wouldn't Let Caragiulos Stay
Caragiulos opened in 1989, founded by Tony Caragiulo and his sons after Tony spent decades running a bakery in Brooklyn. The place grew from a lunchtime pizza counter into the flagship of a family portfolio that eventually included Owen's Fish Camp, founded in 2010, and Veronica Fish & Oyster. For 36 years it anchored the Mira Mar Plaza building on South Palm Avenue.
The plaza changed hands in 2023, when Seaward Development purchased it and pushed for demolition, citing engineers' reports that called the building unsafe and unstable. The city denied that demolition request on historical grounds, and Seaward's revised plan called for two 18-story condo towers with the original plaza facade preserved. That fight over the building's future, not anything about Caragiulos's business, is what forced the move. The restaurant had reportedly held an 18-year lease, but staying inside an active redevelopment site wasn't workable.
Caragiulos originally set its last night on Palm Avenue for October 26, 2025, then extended service a few weeks after what the family described as unforeseen delays at the new location, according to Business Observer. The new home is a 4,300-square-foot space at 1833 Ringling Blvd, between Osprey and Links avenues and less than a mile from the original spot. The family aimed for a February 2026 reopening, bringing the same pizza and pasta menu, Anna's homemade biscotti, and seating for roughly 150 into the new build.
A Fourth Street Restaurant's History
A few blocks north, the building at 1525 Fourth St. in the Rosemary District has a different kind of history. Before this year, it had cycled through seven restaurant tenants in fifteen years:
- Mad Crow Brewery & Grill, 2011
- Darwin's on 4th, 2012 to 2015
- Servandos, 2015 to 2017
- Salsas & Boogaloo Restaurant & Lounge, 2017
- Catrina's Tacos and Tequila, 2018 to 2019
- Oasis Restaurant & Bar, 2020 to 2023
- Nancy's BBQ, 2023 to 2024
The address had developed a reputation for restaurant turnover. Tsunami Sushi & Hibachi, which had run its original downtown location on Central Avenue for more than a decade, closed that spot in September 2025 after outgrowing the space. The same ownership group, Samuel Ray, Jeffrey Karasawa, and Jason Klamson, had already signed a lease on the Fourth Street building and spent more than a year gutting it: moving the front entrance, removing an apartment that blocked the windows, reangling the bar, stripping drywall to expose the original 1925 brick from the building's days as Florida's Citrus Exchange, and repainting the exterior white.
The result opened April 10, 2026 as Hanami Sushi Cocktails & Grill. "It's not cursed," Ray told Your Observer while the renovation was underway. Sarasota Magazine's July review described a room that doesn't ease you in: chandeliers, velvet chairs, a taxidermied bear near the entrance, and cherry blossoms climbing the ceiling to match the restaurant's name, which translates to flower viewing. The sushi and hibachi menu carried over from Tsunami, but the footprint, the cocktail program, and the setting did not.
Same Season, Same Two Blocks
Line these two stories up and a pattern shows itself. Caragiulos left Palm Avenue because the building it occupied became a redevelopment target, and an 18-story condo project doesn't coexist well with a working kitchen. Tsunami closed its Central Avenue location after outgrowing the space, and the same ownership group opened Hanami on Fourth Street.
Both new locations are a few blocks from their former downtown addresses: Caragiulos is on Ringling Boulevard, and Hanami is on Fourth Street at the edge of the Rosemary District. That's not a coincidence about two restaurants. It's a signal about what kind of real estate is actually available downtown right now: the historic, tightly held buildings along Palm Avenue and Main Street keep getting eyed for redevelopment or outgrown by the businesses inside them, while the slightly less obvious stretches just north and east have the room to absorb what gets displaced.
What Changes If You Already Live Downtown
If Palm Avenue was your habit, your walk just got a few blocks longer in two different directions. Caragiulos regulars now head to Ringling Boulevard for the same pizza and pasta, in a bigger room with more seats than the old Palm Avenue location ever had. Tsunami regulars now head north into the Rosemary District, where the sushi and hibachi menu they know is served inside a building with more history and more room than the old Central Avenue spot could offer, plus a full cocktail list that wasn't part of the original concept.
The Mira Mar Plaza site is still working through its redevelopment timeline, and the Fourth Street building has a new tenant after more than a year of renovation work by the ownership group. If you're downtown often enough to have noticed the empty storefront on Palm or the new white facade on Fourth, this is the why behind both.
Kona Realty pays attention to changes like these because they're part of what makes living downtown feel different year to year, long before any of it shows up in a listing description. If you're curious about what else is shifting in downtown Sarasota, or you just want a second opinion from people who track this neighborhood closely, Kona Realty is always glad to talk it through.
