Halfway through the decade, West Palm Beach is seeing significant changes to its skyline as developers move forward with more than a dozen condominium projects. According to an analysis by The Real Deal, these projects will add over 2,000 units to the city.
Four of these developments have secured construction loans totaling nearly $1.4 billion. Among them is Forté on Flagler, developed by Two Roads Development and Alpha Blue Ventures at 1309 South Flagler Drive, which began closings earlier this summer after surpassing $289 million in presales.
The focus of new condo development has shifted northward from the city’s core. At least nine projects are planned for neighborhoods north of the Flagler Memorial Bridge.
“They are testing the North Flagler market,” said Gary Pohrer, an agent with Serhant. He described the area as “unproven” but noted attractions such as the Nora District.
The rapid pace of development marks a transformation for West Palm Beach, once considered a quieter city. Major developers including Steve Ross, Jeff Greene, David Martin and Jorge Pérez are investing heavily in what some have dubbed “Wall Street South.” Despite this activity, sales velocity has not matched that of nearby Miami.
“It’s not the Miami pace that you sell half a building in one year, it’s a more patient market,” said Kenneth Baboun, founder of BGI Companies and developer of Alba Palm Beach. “We don’t have the investor market that Miami has, we have an end user market.”
Developers’ confidence is reflected in their investments and timelines; however, only seven out of more than twelve projects have launched sales so far. Of those with confirmed figures: Alba Palm Beach is over 60 percent presold; Mr. C Residences West Palm Beach reports 70 percent presold; and Ritz-Carlton Residences is nearing 50 percent presold.
“We were not expecting sales in July and August,” yet demand persisted through summer months at Ritz-Carlton Residences according to Chris Leavitt from Douglas Elliman’s marketing team.
Some projects face challenges related to design changes or slow pre-construction sales typical for this market segment. “Once you make a lot of changes… the changes became the topic of conversation, and not the project,” said Erin Sykes with Sykes Properties about Related Ross’ Shorecrest tower.
Jeff Greene plans to wait before launching sales for his Herzog & de Meuron-designed towers until there is greater absorption among existing inventory: “If Olara was at 75 percent, and South Flagler was 80 percent sold… We’re not in any hurry. I don’t think there’s enough buyers right now.” He cited high interest rates and unfamiliarity with pre-development sales among local buyers as factors slowing down commitments.
Baboun echoed similar sentiments regarding buyer preferences: “They want new, and they want now.”
A detailed look at ongoing projects shows:
– South Flagler House by Related Ross landed a $600 million construction loan in June—Florida’s largest single condo loan this year—with two towers designed by Robert A.M. Stern Architects.
– Shorecrest (Related Ross) underwent multiple redesigns since last year; construction is expected to start next year.
– Ritz-Carlton Residences (Related Group/BH Group) nears half its units sold ahead of planned construction next year.
– Apogee (Related Group/BH Group), another waterfront project designed by Arquitectonica.
– Alba Palm Beach (BGI Capital/Blue Road) approaches completion for its 22-story tower after securing $95 million financing last year.
– Olara (Savanna) received a $380 million loan in March; two-tower complex under construction.
– The Berkeley (Al Adelson/Sympatico Real Estate) broke ground on its Arquitectonica-designed project late last year.
– Mr. C Hotel & Residences West Palm Beach (Terra/Sympatico Real Estate) recently obtained $285 million financing with most condos already presold.
– Jeff Greene’s twin towers remain on hold until further market absorption occurs.
– Flagler House (Perko Development/Kolter Urban), approved earlier this year across from Mar-a-Lago Club; sales launch planned for early next year.
– Great Gulf plans another high-rise after completing La Clara tower last year; zoning change secured last month for new site on North Flagler Drive.
– Rybovich Marina redevelopment proposes four condo towers totaling 660 units along waterfront district still being planned; architecture firm Kohn Pedersen Fox involved due to prior work on Hudson Yards mega-projects in New York City—details reported by Palm Beach Post.
– Nora District developers plan an additional residential building as part of their mixed-use expansion set to begin construction next year.
These ongoing developments signal continued transformation for West Palm Beach but reflect caution amid changing buyer behavior and broader economic conditions impacting real estate markets nationwide.
