The firms are financing 65% of the project cost, or an estimated $294 million, through construction debt. The other 35%, or about $158 million, is to be funded with equity. Flagstone Property Group LLC; its managing partner, Flagstone Development Corp., and its project subsidiary, Flagstone Island Gardens LLC are developing the project. The financing terms are to be negotiated.

Flagstone has committed to contributing equity of at least $22 million to the project capitalization, or nearly 14% of the planned equity. Through Sept. 30, the company already had invested and committed about $12 million of the committed equity capital to fund expenses, a figure expected to grow to $14 million by the end of the year. Flagstone is looking to raise about $136 million in equity from investors for the capitalization.

The waterfront development will consist of a 345-key, four-star business/resort hotel; a 135-key, five-star luxury hotel that also will provide services to the fractional residences above the hotel floors; 105 units of luxury fractional ownership, with seven fractions each unit; 221,000 rentable sf of high-end retail and dining space; a 43-slip deepwater mega-yacht marina; a 30,000-sf, upscale, holistic spa; and a five-level parking garage for more than 1,600 cars. In addition, public spaces and amenities will include gardens, a promenade, an expanded and enhanced fresh fish market, and water taxi service to Downtown and cruise ship terminals.