The Year in Review: A Hot One for Weather — and Real Estate Deals
My Palm Beach Post
Published on 12.22.2016
It takes the perfect blend of colorful history, superb location, iconic architecture and an elite, sophisticated citizenry to create an international destination – a place where every moment is a celebration. This is the essence of Via Mizner, an exclusive, landmark address in the heart of a beloved community, perfectly crafted for world-class lifestyles.
As one of a select few locations worldwide with a residential property bearing the Mandarin Oriental name, The Residences is truly a signature address. Upon arriving at the private entrance lobby, the cascading water element and grand staircase only hint at the striking design and details that abound throughout. Incomparable sophistication is imbued into each of the eighty-nine, light-filled homes that celebrate the Boca Raton lifestyle with absolute comfort and complete security.
For over fifty years, Mandarin Oriental Hotel Group’s reputation for impeccable service, distinctive designs and renowned, holistic spas has been key to its rapid expansion across the globe. Today, the company operates thirty-two hotels and seven Residences at Mandarin Oriental in 23 countries and territories. A dedication to the highest levels of customer satisfaction year after year has garnered Mandarin Oriental Hotel Group a most enviable ranking as a recognized leader in worldwide luxury hospitality.
It’s fitting that Palm Beach County’s weather at year end is the same as the real estate climate all year long: Hot, and staying warm.
The county saw a number of top-dollar real estate deals in 2016 as investors, businesses and institutions moved to trade or invest in the county’s sizzling market.
Real estate experts say the hangover from the 2007 recession is over in the commercial market. Properties are trading at or near boom time highs and deals are moving fast. In fact, as the year ended, there seemed to be a rush to wrap up transactions.
Here, in no particular order, were seven of the biggest deals or developments taking place in 2016:
1. Modica buys more Jupiter waterfront land
Jupiter land mogul Charles Modica in November snapped up the Rustic Inn Crabhouse property for $8.3 million, more than doubling his holdings on a section of State Road A1A along the Jupiter Inlet and giving him greater flexibility to build.
The 3.7-acre Rustic Inn site is just west of Modica’s 2-acre parcel on Love Street. There, Modica wants to build an outdoor marketplace featuring restaurants, offices and shops. The $30 million, 50,000-square-foot project has been three years in the making.
Modica’s interest in developing prime waterfront land along the Jupiter Inlet has prompted mixed reactions from residents, some of whom fear the city could lose its Old Florida charm.
Modica also owns the 10-acre Suni Sands mobile home park at 961 A1A, east of both Love Street and The Rustic Inn. Modica wants to build a “historic” inn and marketplace there.
2. Esperante office tower sells for big money
The Esperante Corporate Center in West Palm Beach traded hands for the second time in three years, selling in July to a New York firm for $125.75 million. The 2013 sales price was just $71 million.
RedSky Capital of Brooklyn, N.Y., is the new owner of the 256,100-square-foot trophy building at 222 Lakeview Ave.
The sale reflected the strong demand and thin supply of Class A office buildings downtown.
3. New apartments and hotel open in Boca Raton’s downtown
The recession slowed Boca Raton’s downtown plans — but they’ve come back to life now. “There’s a city coming out of the ground,” said Todd Herbst, partner in the Big Time Restaurant Group in West Palm Beach.
Big Time, whose restaurants include Rocco’s Tacos and City Cellar, is nearly done building a Louie Bossi restaurant in the Hyatt Place hotel, which just opened. The 14-story, 200-room hotel is in the center of Boca’s downtown, at Federal Highway and Palmetto Park Road.
Meanwhile, Palmetto Promenade, a nine-story, 373-unit apartment complex on east Palmetto Park Road, has started leasing units. The three-block complex is so massive that if it were turned on one end, it would rise 95 stories.
4. Dealing in Dixie Highway continues
Since 2012, investors and business owners have been pouring money into buying up sites along Dixie Highway, south of Okeechobee Boulevard.
In 2016, several South Dixie Highway in West Palm Beach sold for more than $1 million each, adding to the boom.
They include two purchases by interior decorator Sara McCann, owner of Hive Home Gift & Garden at 424 Palm St.
McCann paid $1.7 million for the Zeluck Windows and Doors building and parking lot at 1600 S. Dixie Highway. She also paid a whopping $1.5 million for the former Ambrosia restaurant at 1603 S. Dixie Highway in January. The property’s previous sale price: $195,000 in 1984, according to Palm Beach County records.
Meanwhile, a triple-play deal took place at year’s end:
The Gulfstream Bistro at 3815 S. Dixie Highway sold for $1.2 million to GCP Realty LLC, owned by Michael and Debra Lakow (The Lakows own the Field of Greens eatery). Investor Jonathan Gladstone bought the Gulfstream Bistro for $800,000 in January.
The Nearly New Thrift Center (part of MorseLife Health System) at 2218 S. Dixie Highway sold for $1.4 million to Fenglad Realty LLC, an entity owned by Gladstone, his sister, Edythe, and his husband, Robert Fensterman.
3611 S. Dixie Highway sold for $1.65 million to Morse Geriatric for its new thrift store location.
5. West Palm office trades hands, nabs health care tenants
Jupiter Medical Center and Mount Sinai Hospital of New York are expanding their alliance with an aggressive plan to bring a range of health care services to downtown West Palm Beach.
The partnership, the most extensive between a New York-based hospital and a Palm Beach County hospital, reflects how eager hospital companies are to attract new patients.
The Jupiter Medical Center Mount Sinai New York Plaza will be the new name for an office building at 625 N. Flagler Drive, formerly the Bank of America Centre. The 110,000-square-foot building changed hands Oct. 14 for $23 million. Partners Michael McCloskey and Leslie and Tom Quick bought the building from car dealer Ed Napleton.
6. Jack Nicklaus to redesign two county golf courses
Revitalization is the name of the game for tired old golf courses.
Golf great Jack Nicklaus, a North Palm Beach resident, signed on to redo two country club golf courses: Via Mizner in Boca Raton and Banyan Cay in West Palm Beach.
Via Mizner, a downtown Boca Raton hotel, condo and apartment complex, hired Nicklaus to redesign its golf course into a championship course as part of the project’s private club, the Via Mizner Golf & City Club. The Golf Club will be at the soon-to-be redesigned golf course five miles west of Via Mizner, off Palmetto Park Road and west of Military Trail.
The City Club will be inside the new Mandarin Oriental hotel, part of the 830,000-square-foot complex now under construction at the northeast corner of Federal Highway and Camino Real in downtown Boca Raton. (Apartments already are built and being leased).
Meanwhile, Banyan Cay Resort & Golf Club in West Palm Beach secured Nicklaus to redevelop its golf course. Noble House Hotels & Resorts is building a hotel and country club.
Formerly known as the President Country Club, Banyan Cay is east of Interstate 95, off Congress Avenue north of Palm Beach Lakes Boulevard, near the Palm Beach Outlets. A groundbreaking was held last month.
Banyan Cay is the largest redevelopment in the city of West Palm Beach since CityPlace.
7. The Bristol condo moved closer to reality, while another waterfront property traded hands
The Bristol, the most expensive condominium ever built in Palm Beach County, started construction this year as buyers continued to pay millions for units in this waterfront West Palm Beach property at 1100 S. Flagler Drive. The average size of a unit at The Bristol is about 4,500 square feet and costs $10 million.
Meanwhile, vacant land formerly home to the 1515 Tower at 1515 S. Flagler Drive was sold to Great Gulf of Canada. The company plans a slim, 27-story tower featuring 84 condominium units.
We are pledged to the letter and spirit of the U.S. Policy for achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising, marketing and sales program which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status or national origin. The sketches, renderings, pictures, photos, and designs depicted or described herein are conceptual in nature and are not to scale, are based upon preliminary development plans, may depict options, upgrades, features or views not available in all model types and are subject to change without notice in the manner provided in the applicable purchase agreement. No guarantees or representations whatsoever are made that any features, amenities or other facilities will be provided or, if provided, will be of the same type, size, location or nature as depicted or described herein. Any view from a unit or from other portions of the property may in the future be limited or eliminated by future development or forces of nature. Nearby golf courses, open spaces and other areas are not owned or operated by the Developer and there is no guarantee they will be operated or maintained for any particular purpose or in any particular manner. Many of the facilities within the project will not be located within the Residences. Certain facilities or services described herein will be provided by the hotel or club operators or others and may be subject to additional charges. Membership in the Club will be mandatory for unit owners and will require payment of additional dues, fees and costs. A substantial number of Club memberships will be available to non-residents. Business establishments may be sold to third parties, may be used for different purposes, and may change or discontinue operation at any time.
An offering is made only by the prospectus for the condominium and no statement should be relied upon if not made in the prospectus or in the applicable purchase agreement. Penn-Florida Realty Corporation is the Developer’s exclusive broker for this project. No solicitation, offer or sale of a unit in the Residences will be made in NY, NJ, or in any other jurisdiction in which such activity would be unlawful. Via Mizner Owner III, LLC (“Developer”) is a newly-formed entity, which is the sole offeror of the units being offered for sale as The Residences at Mandarin Oriental, Boca Raton (“Residences”). Penn-Florida Capital Corp. and the other “Penn-Florida Companies” are affiliated with the Developer but are not the developer of the Residences. All statements and any representations herein shall be deemed to have been made solely by Developer. An affiliate of the Developer is developing the adjacent proposed Mandarin Oriental, Boca Raton hotel (“Hotel”) and the rental programs, if any, offered to unit owners in the Residences. Neither Mandarin Oriental Hotel Group nor any of its affiliates, nor their respective Officers, Directors, Agents or Employees (collectively, “MOHG”), are in any way owners, offerors, promoters, issuers or underwriters of, or responsible or liable for, or are making any representations or warranties with respect to, the Developer, construction of the Residences, any offering for sale of the real property constituting the Residences, or any increase or return on related investment. MOHG has not assumed and has no liability or responsibility for any financial statements, projections or other financial information contained in any sales and marketing materials, prospectus or similar written or oral statements relating to the Residences. Developer has the sole right and responsibility for the manner and means by which the Residences are sold, and for all representations in relation to the Residences. Developer has obtained rights to use the “Mandarin Oriental” name and trademarks (“MOHG Marks”) in connection with the Residences and the Hotel subject to the terms and conditions of non-exclusive license agreements which may be terminated at any time upon certain occurrences. The right to use the MOHG Marks in connection with the Residences is thus not guaranteed and no such right is included in the Residence being acquired by any purchaser. If any of the relevant agreements are terminated, or Mandarin Oriental ceases to manage the Hotel or Residences for any reason, use of the MOHG Marks in connection with the Hotel and Residences may be terminated at MOHG’s discretion.
The Residences at Mandarin Oriental, Boca Raton (The Residences) are not developed, sponsored, owned, offered or sold by Mandarin Oriental Hotel Group or any affiliate thereof (MOHG), and MOHG makes no representation, warranty or guaranty of any kind regarding The Residences. The developers and owners of The Residences use the Mandarin Oriental name and trademarks subject to the terms of revocable licenses from MOHG which may expire or be terminated.
Photographs and artwork are lifestyle photographs and conceptual artist renderings.