Just when we thought there were no development sites left, developers and investors put their heads together to create opportunity. This is currently the case at 1 Fisher Island Drive, where a coveted 9.6-acre waterfront parcel prepares to enter the market.
The site is located adjacent to the Fisher Island Terminal and golf course and will offer beautiful views of Government Cut, the Biscayne Bay, Atlantic Ocean and the Miami Beach skyline. The nearest new development is so exclusive, you have to be invited to even consider a purchase there.
Given the size, location and exclusivity of the parcel, bids are expected to begin north of $200 million.
Rendering of Six Fisher Island Aerial | Image Courtesy of Six Fisher/Related Group
There’s only one catch…
On the surface, this development site sounds like perfection. There is wealth, exclusivity, endless amenities, but there’s always a catch.
The property is currently a fuel depot. TransMontaigne Partners purchased the fuel depot in 2003 along with six other storage facilities for a combined $156 million, according to reports. When the Fisher Island portion sells in this transaction, there are stipulations as follows…
According to the Offering Memorandum, the winning bidder must accept the property as-is and “with all faults.” They must make all investigations and do all due diligence prior to placing the bid, there are no contingencies. The closing will not be delayed by any pending government entitlements or approvals, all zoning, environmental, land use, regulatory and other constraints must be rectified or accepted prior to closing.
And one last thing, the fuel depot must stay in operation until 2027.
Why this is a caveat.
Naturally caveats are not fun, particularly when bidding starts in the multi-centimillions. Environmental caveats are incredibly risky though. In order to build on a former fuel storage facility, the soil must be remediated and the safety of future residents must be assured. The amount of remediation is difficult to gauge and is also a subjective matter, bringing politics into the mix.
Caveats are a hurdle, not a wall.
Despite the fine print in the Offering Memorandum, 1 Fisher Island Drive is an incredibly precious piece of land. When the new project is completed, the island will be 100% residential and leisure-related amenities. There will be no functional eyesores at all.
One Thousand Museum Condo Downtown Miami | Image Courtesy of Be Legendary
While the environmental remediation is not ideal, it is also not impossible. There are many opulent developments and city amenities that are built on previous gas stations and brownfields. Among these are One Thousand Museum in Downtown Miami, where the site was once a BP Gas Station. Just across the street is Maurice A Ferré Park, Bayfront Park, the Phillip and Patricia Frost Museum of Science and the Perez Art Museum. All of these were built on what was once a brownfield.
These are just a few nearby examples of what possibilities could be in store for a space that may require environmental remediation. In essence, all urban redevelopment comes with this to a certain extent, as every development site comes with a history of other projects that have come and gone as the markets change and cities grow.
And finally we have to circle back around to where we started. This is the last possible construction site on Fisher Island. If a developer wanted to get creative and build another tower, they would need to either remove an existing building or remove an amenity. Neither of those is anywhere near likely on Fisher Island, so this is indeed a trophy.
Considering the fact that the 50 planned residences at Six Fisher range in price from $30 million to over $150 million, the possibilities are immense for a visionary developer to bring something truly magnificent.
If you are interested in exploring opportunities on Fisher Island, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.
Fisher Island Aerial from South Miami Beach
Read More About Fisher Island:
Life On Fisher Island – The Resort-Like Amenities And Practical Life Services
A Glimpse Inside Residence 5 At The Links Estates At Fisher Island
Fisher Island Preconstruction Beats The Odds – $300M Sold At Six Fisher Within Weeks Of Launch
Fisher Island Penthouse Combination Sets Record With Sale Over $150 Million
