Image via Blue Water Drones
BH3 Management and Merrimac Ventures, two of South Florida’s leading development firms, have teamed up to execute the City of Miami’s long-held vision of a thriving destination on Watson Island. The joint venture will draw upon their deep local roots and collective expertise to bring to life 10.7 acres of land on the island, which is one of the most vital properties in South Florida, situated along Biscayne Bay midway between Downtown Miami and Miami Beach.
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ESJ Capital Partners have proposed to bring a 300-room hotel designed by the Miami-based EoA Group to Watson Island as part of the redevelopment of Jungle Island. Voters approved the hotel development in August 2018 which will transform Jungle Island’s property including the parking garage and add an additional 12,000 square feet of meeting space while leaving the botanical gardens undisturbed.
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Miami voters have approved a new hotel to be built on city-owned land on Watson Island as part of a redevelopment of Jungle Island. 59% of voters said yes in support of waiving competitive bidding on the property to extend Jungle Island's lease to 2099 and approve the owners of Jungle Island to have the right to build a 13-story, 300 room hotel.
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15 years ago, the city of Miami and Turkish developer Mehmet Bayraktar's Flagstone Property Group struck a deal to the tune of a 99-year lease to allow Flagstone to develop the Island Gardens property on Watson Island. Last week, city commissioners unanimously voted 5-0 to issue a notice of default to Flagstone Property Group. The city of Miami grew frustrated after the development proposed by Flagstone, which would include 2 hotels, 221,000 SF of retail and restaurant space and a megayacht marina was never built and only the megayacht marina was completed in 2015. The project was approved by Miami voters in 2001 and had expected costs over $1 billion. Flagstone Property Group claims that they can cure any defaults and may sue the city. They also claim that terminating the lease would lead to losses over $100 million. During 15 year period, Flagstone Property Group paid only $6.3 million in rent. Mayor Tomas Regalado could veto the vote and has suggested commissioners bring in a third-party to determine if Flagstone is actually in default.
Jungle Island has sold to ESJ Capital Partners for $60 million. In the deal, $15 million will be cash and the rest of the $45 million will include the assumption of the the current mortgage on the property. The deal transfers the existing lease on the city owned Watson Island to ESJ Capital Partners. The new owners plan to add over 7 zip lines and a water park for the summer to the 18-acre attraction on Watson Island, right off of the MacArthur Causeway. The renovations will come over three-phases over 2 years with the plan to increase the number of visitors and revenue. A 260-room hotel has also been proposed but requires a voter referendum from the City of Miami. Other upgrades to the facilities will include a private beach club, updated dining and food facilities as well as banquet facilities. Jungle Island will still be managed by John Dunlap and Iconic Attractions Group.
“This is a once-in-a-lifetime opportunity to capitalize on the heritage of Parrot Jungle, then Jungle Island, and create a truly unique experience within an urban setting,” said Gabriel Amiel, Chairman and co-Founder of ESJ Capital Partners.
Mehmet Bayraktar
Activists continue to press and challenge as Flagstone Property Group, developers of the Island Gardens project on Watson Island, have once again filed for modifications to the 2007 MUSP approved plans. Flagstone is aiming to replace the proposed seven-story parking garage with a two level garage with one level that is below grade. Updated plans were submitted for review on September 19. Island Gardens will feature a superyacht marina that can accommodate up to 550 feet, 2 luxury hotels, condos, and a retail and entertainment promenade with over 221,000 SF of retail and green space. The marina will be the first of its kind in North America and will be able to house of to 50 superyachts matched with full-service amenities for the marina including a clubhouse, on-site customs, etc. Some oppose Flagstone's right to their lease of the land, which was approved pending they would be able to complete the project but doubts have arisen as the property has sat virtually unchanged over the last decade aside from the launch of a sales center and The Deck at Island Gardens. Flagstone Property Group had initially intended to deliver Island Gardens in 2018. Read our initial profile on the Island Gardens project from July 2016.
Miami is fast on the rise to solidifying itself as the superyacht capital of the Americas and the Island Gardens development is a major driving force behind the shift. By Flagstone Property Group, the Watson Island project is expected for completion in 2018 featuring a superyacht marina that can accommodate up to 550 feet, 2 luxury hotels, condos, and a retail and entertainment promenade. The marina will be the first of its kind in North America and will be able to house of to 50 superyachts matched with full-service amenities for the marina including a clubhouse, on-site customs, etc. The project will also feature 221,000 SF of retail and green spaces throughout the property. Mehmet Bayraktar won the rights to build the development after working with the city for 14 years. Flagstone plans to start building this fall.
