Waterfront land in
West Palm Beach is in such high demand that 60-year-old
condominium units sold for as much as $1.8 million last year
on North Flagler Drive where a clutch of adjacent properties
have been bought by a single family and a Miami-based
developer.
Every unit at the
Flagler Cove condominium in the 4700 and 4800 blocks of
North Flagler has changed hands in the past four years.
Prices started in 2019 at $145,000 but increased
post-pandemic to between $1.1 million to $1.8 million in
2023, according to Palm Beach County Property Appraiser
records.
The condominium, which is four two-story buildings built in
1964, is along the Lake Worth Lagoon within sight of the
Palm Beach/Lake Worth inlet, Peanut Island, and across from
Palm Beach.
It’s on a stretch of North Flagler previously ignored or
overlooked by developers but that is now squeezed by
high-rise condos and apartments that have recently opened,
are under construction, or are in the planning stages as
investors clamor for buildable waterfront lots.
Kenneth Baboun, president of developer BGI Companies and
principal builder of the 22-story Alba Palm Beach
condominium, bought five of the Flagler Cove units last year
under a limited liability company that lists him as the
manager. Alba
Palm Beach broke ground in August at 4714 N. Flagler Drive,
just south of a single-family home owned by the family that
bought the other units at the adjacent Flagler Cove. |
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Major high rise construction and real estate
development in downtown West Palm Beach. New office towers in
downtown West Palm Beach, or already completed ones, such as 360
Rosemary, have lured about 100 firms since 2019 to Palm Beach
County.
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In a statement, BGI
Companies said it has no announcements “at the moment” but
“remains bullish on the growth of Northwood and will
continue to double down on the development within the
neighborhood.”
In an August Palm
Beach Post story about Alba beginning construction, Baboun
said the company was shopping for “other options” in West
Palm Beach. Alba units cost between $2.5 million and $10
million.
“We believe so strongly in this market,” Baboun said.
The owner of the single-family home, Justo Naranjo, whose
family bought the other Flagler Cove units, did not return a
message requesting an interview. Flagler Cove units are
currently being rented with some undergoing renovations.
To be sure, there are some residents of North Flagler
opposed to the burst of new development. The proposed Apogee
condominium, which is just 550 feet north of Alba, is being
fought by the Northwood Harbor Historic District.
“This overdevelopment of the waterway is a mistake,” wrote
North Flagler resident Steve Annabel on a comment card read
at a Dec. 19 West Palm Beach Planning Board meeting.
“Investment groups and developers are overcrowding this
unique area.”
Still, developments expected to follow Alba on North Flagler
include Olara, with two towers soaring more than 300 feet at
191 N. Flagler Drive. Also, the Miami-based Related Group is
proposing a 25-story condominium at 4906 N. Flagler Drive
called Apogee. Related Group opened the 24-story dual-tower
Icon Marina Village along North Flagler in March 2023. |
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Units in the 60-year-old Flagler Cove condominium,
outlined in red, sold for more than $1 million in 2023 to the
developer of Alba Palm Beach, a new luxury condominium two lots
south of Flagler Cove. The lot to the right (north) is owned by the
Flotilla Club.
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And New York’s Related
Cos., which is led by Miami Dolphins owner and Palm Beach
resident Stephen Ross, launched sales last month of the
140-unit luxury condo Shorecrest at 1901 N. Flagler Drive.
Shorecrest’s units are expected to sell for between $1.5
million to $10 million.
Related Cos. is not affiliated with the Miami-based Related
Group led by Jorge Perez.
Illustrated Properties of Palm Beach luxury real estate
agent Lynn Telling said there is a market for high-end new
construction in West Palm Beach that wasn’t there before the
pandemic.
“We are seeing the relocation of very prominent firms, and
we are getting more affluent buyers,” Telling said. “The
builders are trying to meet the demands and the allure of
the waterfront with these upscale condos.”
An October analysis of IRS income migration data from 2020
and 2021 by the Economic Innovation Group found Palm Beach
County had a net gain in adjusted gross income of $7 billion
— the highest of any county nationwide.
Steve Simpson, a Realtor with William Raveis, said the North
Flagler waterfront is popular because it's not historic — a
designation that comes with restrictions on teardowns and
home designs. Simpson is listing a newly built $39 million
home on North Flagler.
“West Palm Beach is completely on peoples’ radar now,”
Simpson said.
The Alba property on North Flagler, combined with the
single-family home and Flagler Cove condominium, is a total
of about three acres of contiguous waterfront property.