Claim: Island Gardens Was Negotiating To Flip Project For $185M

Island Gardens leaseholder Flagstone claims to have had a written offer to sell a majority stake in the project.

According to a lawsuit filed by Flagstone, an equity buyer had submitted a written offer to purchase a 95% stake in the project for $185 million, with $65 million to be paid within 45 days of the deal being signed. Flagstone claims to have “lost” the buyer after Miami’s commission voted last month to find Flagstone in default.

Even as they were negotiating a sale, Flagstone claims to have commenced construction on a retail and parking structure, which was being “self funded.” There is little evidence at the project site to support that claim, however.

Flagstone is now suing the City of Miami demanding $122 million in compensation – the amount they say they have spent on pre-development and other costs for Island Gardens since being awarded the rights to the land around 15 years ago.