Two more old condominium complexes along the West Palm Beach waterfront could be purchased by real estate developers wanting to tear them down and rebuild new luxury high-rise residential towers on their sites.
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Harbor Towers Condominium and Marina |
Why would existing West Palm Beach condo owners want to sell?
Condo buyouts can be a lifesaver for
owners of older units who are facing significant costs under
new safety laws passed following the Surfside condominium
collapse in 2021. The law also requires that money be set
aside in reserves and safety inspections completed.
At 2800 N. Flagler Dr., Orlando-based Unicorp National
Development is buying the aged La Fontana condominium for
about $200 million. The company plans to tear down the
65-year-old property, which needs repairs.
In its place, Unicorp is planning a two-tower complex
featuring an ultra-luxury hotel and a hotel-branded
condominium, Unicorp President Chuck Whittal confirmed on
Aug. 26.
These buyouts also can cause friction among condo owners who
want to sell versus those who don’t. They also can prompt
aggressive tactics by rival developers hoping to lock down
units.
An example is the 61-unit Harbor Towers & Marina Condo at
3901 South Flagler Dr. This is where an affiliate of Related
Ross and an affiliate of Fort Partners each vied to buy out
condo units.
The aggressive tactics resulted in Related Ross filing a
lawsuit, now settled, against the Fort Partners affiliate.
The settlement paves the way for Fort Partners to continue
purchasing units with the intent of demolishing the
buildings for new construction.
Related Ross is West Palm Beach’s dominant developer. Fort
Partners is known for building Four Seasons Residences and
already owns two apartment complexes south of Harbor Towers,
at 3906 Washington Road and 3907 S. Flagler Drive.
Related Ross recently bought 27 units at Southbridge
Condominium, a 1980s West Palm Beach waterfront condo, for a
combined $25.4 million, according to the Palm Beach County
Property Appraiser’s website. Southbridge is at 3915 S.
Flagler Drive.
“House of gold” to rise in the south part of West Palm
Amid the scramble to buy out old condo buildings, one former
condo along South Flagler Drive already is making way for a
new luxury high-rise tower.
A three-story condominium called the Flagler House at 3705
S. Flagler Drive was razed in October after owners were
bought out by PK Flagler LLC, a partnership between Perko
Development and Kolter Urban.
Now the partners are building a 19-story luxury condominium
dubbed Maison D’Or (“house of gold” in French).
The property is across the Intracoastal Waterway from
President Donald Trump’s Mar-a-Lago Club.
Maison D’Or also sits between the Portofino South and
Flagler Yacht Club properties, which are both weighing bulk
buying offers.
Maison D’Or will feature only 39 units but eight floor plans
ranging from one to four bedrooms. Prices start at $5.7
million for two and three-bedroom residences, with
four-bedroom “estate” units start at $12.9 million.
The building itself will have lots of amenities including a
private wine storage and tasing room, plus an elevated pool
deck.
Kolter Urban President Robert Vail said the company is
upbeat about its sales prospects. The real estate firm plans
to break ground on construction in either October or
November.
So far, the newly-launched Maison D’Or has snared a handle
of pre-construction contracts, Vail said. Some buyers either
are local from places such as the El Cid neighborhood in
West Palm Beach or from Palm Beach.
Others potential buyers are leaving
high-tax states the Northeast or the west, such as
California.
Vail said Maison D’Or has a unique appeal. “We’re different.
We’re in a residential neighborhood…but a mile from
downtown,” he said.