The Miami City Commission has approved the sale of a portion of Watson Island for $29 million, allowing Merrimac Ventures, led by the Motwani family, and BH3 to develop the site into a mixed-use project that will include condominiums. The decision follows significant criticism from local residents who argued that the deal undervalues the property.
“Residents have sued the city because of the issue with Watson Island before, and have taken a vote to ensure the sale of Watson Island is of fair market value,” said Miami resident Gilbert Palacios during the meeting. “We can use responsible and good development in our city like we have done in the past. … This is a bad deal for the city, a bad deal for residents, a bad deal for workers.”
Commissioner Ralph Rosado was alone in voting against the measure. He called for an independent appraisal by Cushman & Wakefield to determine if the city was receiving appropriate value for the land. “At this time, I would like to be confident that we’ve negotiated the best possible deal for the city, and I’m not there at the moment,” Rosado stated. “I do think that there is room to make this a better deal that’s more responsive to our residents and our taxpayers. … Not only do I think that there’s room for additional public benefits, but I have concerns about the fact that the purchaser could, in fact … turn around and flip the property, and that has major consequences.”
Rosado’s motion did not pass, and commissioners moved forward with approving the sale resolution after previously deferring action at earlier meetings.
Disagreement over valuation arose from an appraisal cited by local media indicating that Watson Island land could be worth between $257 million and $342 million. Developers argue that an existing long-term lease reduces its market value.
In 2024, 64 percent of Miami voters had approved selling about 3.2 acres at 888 MacArthur Causeway to IG Luxury—the venture formed by BH3 and Merrimac Ventures. Under terms of this new agreement, developers will pay $29 million for ownership rights while also contributing $9 million toward affordable housing initiatives and infrastructure upgrades. The city intends to negotiate lifting deed restrictions on this land with state authorities at an estimated cost of $4 million.
The arrangement enables construction of approximately 100 condominium units instead of timeshare accommodations as originally planned. The developers will continue leasing over seven acres still owned by Miami.
BH3 and Merrimac joined forces in 2023 after taking over leases from Flagstone Property Group—a firm previously mired in legal disputes with Miami since voters first backed its project proposal via referendum in 2001.
At Thursday’s meeting, commissioners postponed their final decision on another proposal related to increasing residential density limits in certain neighborhoods beginning with Edgewater.
