Merrimac Ventures and BH3 Management Join Forces For New Development on Watson Island

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.

The BH3 Management and Merrimac Ventures JV acquired the lease from Mehmet Bayraktar’s Flagstone Property Group who first acquired the rights to develop the land via Miami voters in a city-owned land referendum in 2001. Flagstone Property Group was able to complete the Island Gardens Mega-Yacht Marina but failed to complete the proposed mixed-use development which is set to include hotels and retail. The lease then went through a series of dramas including the City Commission voting to end the lease with Flagstone Property Group who used the city and ultimately the city entered an agreement to pay the developer $20 million.

The transaction between the BH3 Management and Merrimac Ventures JV with Flagstone Property Group was brokered by Alex Zylberglait on behalf of Marcus & Millichap and does not include the Island Gardens Mega-Yacht Marina. The Joint Venture now holds the 75-year lease paying $2 million in annual rent to the City of Miami.

Initial site work at the property, including utility and infrastructure improvements, will soon get underway following the transfer of an existing City of Miami lease to BH3 Management and Merrimac Ventures. In the coming months, the development team will be evaluating how this portion of Watson Island can be designed, curated and programmed to deliver public benefits while aligning with today’s market.

Benefiting from a long track record of bringing signature developments to life, the joint venture has deep experience undertaking transformative projects and creating regional destinations. BH3 Management, led by principals Daniel Lebensohn and Gregory Freedman, has developed more than 4 million square feet of commercial real estate including Privé at Island Estates in Aventura, and has deployed in excess of $2 billion of capital since its inception.

“Watson Island is one of the City of Miami’s most important and well-situated properties, yet it’s also one of its most underutilized assets,” said Greg Freedman, Principal at BH3 Management. “For two decades, Miami residents have been anticipating the creation of a mixed-use development at this site, and now that vision will come together. Our plans for Watson Island will deliver an amenity for nearby residents, as well as a destination for visitors from across South Florida and around the world.”

Merrimac Ventures, led by brothers Nitin and Dev Motwani, is currently developing assets valued above $3 billion and its principals have led some of the largest real estate developments in South Florida, including the $4 billion, 27-acre Miami Worldcenter in Downtown Miami; the Four Seasons Fort Lauderdale Hotel and Residences; Paramount-branded condominiums in Miami and Fort Lauderdale; and the Las Olas Riverfront.

“The development of Watson Island is an opportunity to rethink the way people can access this beautiful site, which offers unobstructed vantage points featuring the Downtown Miami skyline, Biscayne Bay, Museum Park, and the cruise ships at PortMiami,” said Nitin Motwani, Principal at Merrimac Ventures. “Miami is synonymous with the water, and yet there are surprisingly few places where residents and visitors can access the waterfront. Our plans for Watson Island will be centered around public space and the site’s bayfront setting, offering some of the best views in all of Miami.”

Miami voters initially approved plans for the privately-funded development of City-owned land on Watson Island back in 2001, and the lease on the property was most recently modified in 2019. A site plan is already approved, combining hotel, retail, and residential uses alongside new public space and a waterfront promenade. While the plan will be modernized, BH3 Management and Merrimac Ventures intend to develop within the same footprint and density allowances that voters previously approved, ushering in investments in quality-of-life, resiliency, and infrastructure improvements – without putting a burden on taxpayers.

BLOCKCHAIN.COM MIAMI PADEL OPEN ANNOUNCES FEBRUARY LIFESTYLE EVENT

Miami-based investors, Boich Investment Group and 777 Partners, announced today that the World Padel Tour will begin its 2022 season in Miami, Florida.  ‘Blockchain.com Miami Padel Open,’ a six-day lifestyle and entertainment sporting event will take place at Island Gardens Miami, from February 22nd-27th. Bringing together the best within the sport of padel, first-class entertainment, premium dining and beverage programming, curated shopping experiences and exemplary luxuries, the Blockchain.com Miami Padel Open will offer guests the chance to be a part of what is poised to become South Florida’s premier luxury lifestyle sporting event. Also supporting the event is a team of padel enthusiasts including Grinda Investments and Dani Homedes, Owner of the Wynwood Padel Club. 

"Boich Investment Group, along with 777 Partners, are thrilled to bring the World Padel Tour to Miami this month," said Wayne Boich, Chairman and CEO of Boich Investment Group. "We, along with WPT, are committed to bringing a best-in-class experience to all of the players, fans, and partners that will take part in this inaugural event. Padel--the fastest growing sport in the world--has exploded in popularity right here in our backyard and this event is a fantastic opportunity to bring the best Padel players in the world to Miami. Fusing padel and entertainment, the experience will be a multi-faceted one for all in attendance."

Blockchain.com Miami Padel Open will transform Island Gardens into an experiential 2,000-person open-air entertainment venue, lending to the ultimate padel tournament experience. Spectators can anticipate a VIP experience presented by luxury Swiss watchmaking brand, Richard Mille. The Richard Mille Luxury Boxes will house 76 individual VIP Boxes coupled with a special boutique activation by culinary titan Major Food Group’s exclusive private membership destination, ZZ’s Club. In addition, luxury wine label La Fête du Rosé will feature a specialty pop-up bar serving its signature rosé. While, Pura Vida, South Florida’s beloved wellness-driven destination, will be serving guests within their own dedicated area on-site throughout the weeklong event. In true Miami fashion, attendees can expect daily/nightly live music programming and impromptu celeb performances, including a special performance by Ludacris, a multitude of dining options, concessions, and a not-to-be-missed selection of retail offerings, all set against the beautiful backdrop of Biscayne Bay and Downtown Miami.

The Honorary Chairperson for this year’s Blockchain.com Miami Padel Open is famed Miami Heat superstar and padel enthusiast, Jimmy Butler. An avid fan of the sport himself, the five-time NBA All-Star has been very supportive of Boich Investment Group’s efforts in bringing the World Padel Tour to Miami.

“Padel became an instant obsession for me back when my trainer first introduced me to the sport as a new conditioning workout. I love to compete - it really drives me, which ultimately drove my passion for padel to where I’ll play two to three hours a day when I can,” said Butler. 

A true first for the city of Miami and within World Padel Tour history, the Blockchain.com Miami Padel Open will feature both the male and female Circuit, a major step in establishing the professional competition on North American soil. The event will also mark the second time that the World Padel Tour will touch down in the United States in the last five years. 

Drama Beginning to Unfold at Island Gardens on Watson Island Between Flagstone Property Group and The City of Miami

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.

Flagstone Property Group Applies for Modifications to 2007 Approved Plans

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.

Island Gardens

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.