The project, located on 10.5 acres of previously undevelopedland, will feature a 43-story building with the 150-room Shangri-LaHotel and fractional ownership homes, called the Residences atIsland Gardens, atop the hotel. It will also feature a 29-storybusiness hotel/resort and the 50-slip Super-Yacht Harbour; CHI, theSpa at Shangri-La; and 221,000 sf of retail and restaurant space.Watson Island is situated between Downtown Miami and South Beachand is accessible by automobile via MacArthur Causeway (Interstate395, the extension of Interstate 95 to South Beach.)

Flagstone Property Group chairman and CEO Mehmet Bayraktar tellsGlobeSt.com that marketing efforts for the fractional units havestarted with prices ranging from $175,000 to $750,000 for aone-eighth interest. Final discussions are under way with theoperator of the hotel/resort in the 29-story tower, but theoperator has not yet been named. That tower will not include anyfractional ownership units.

Bayraktar adds that the retail space is not within the towers,but in separate structures alongside the retail avenue that runsbetween the two towers. Marketing efforts for the retail and diningspace have recently commenced and several letters of intent havebeen received from restaurateurs and retailers. The positioning ofthe retail will be high-end luxury goods.