$44M Development Mortgage Targets Rising Demand for Luxurious Houses in Delray Seaside

0
65

A Philadelphia-based construction company has secured a $ 44 million loan from Madison Realty Capital for construction on Ocean Boulevard in Delray Beach as the demand for luxury residences in South Florida continues to grow.

According to President and CEO John Farina, construction of a new luxury residential complex on 1625 Ocean will begin shortly.

“Delray Beach is the hottest new destination for northeast people visiting Palm Beach County,” said Farina. “I think you will continue to see high-end buyers choosing Delray over Boca Raton and even Palm Beach,” Farina said.

Both Miami-Dade and Palm Beach averaged $ 3 million in single-family luxury sales in the first two quarters of 2021, according to the recently released Keyes / Illustrated Luxury Report.

In Palm Beach County, there has been a 202% increase in single-family homes by 202% thanks to New York-based corporate executives and finance moguls who want ultra-luxurious homes on the water.

It’s similar with condominiums, according to Keyes and Illustrated President and CEO Mike Pappas.

Mike Pappas, Keyes and Illustrated President and CEO. Courtesy photo

“The relocation of companies from New York and other high-tax countries has propelled the luxury housing market in South Florida,” Pappas said in a written statement. “Demand for new condominiums in Miami-Dade and its northern neighbors should only pick up with the expected return of international buyers as travel restrictions ease. This shouldn’t do any harm to the region’s luxury single-family market, which has continued its strong run. “

Palm Beach Island is still the focus of the county’s high-end market with an average sales price of $ 11.69 million in the second quarter.

From Farina’s perspective, Delray Beach is an emerging area for new South Florida residents.

“Delray Beach is incredibly unique in that the beach has a lack of available multi-unit plots, making it a prime destination,” said Farina. “Most of the city’s beachfront is either public or single-family homes, so our oceanfront development of 14 residences is pretty exclusive.”

Limited land by the sea

Ackman-Ziff, a boutique real estate capital advisory firm, managed the home loan for the transaction. IMI Worldwide Properties, the sales and marketing agent for 1625 Ocean, sold 40% of the project for an average price of just over $ 6 million. There are only nine available residences.

“The availability of oceanfront land in South Florida is extremely limited right now,” said Dustin Salzano, CFO of US Construction. “Our buyers understand what a truly unique opportunity this is to live on a private stretch of the coast in a place like Delray Beach.”

The 1625 Ocean is located on a 120-foot private stretch of beach near Delray Beach’s famous Atlantic Avenue. Courtesy rendition.

The boutique-style development features 14 oceanfront residences, including four penthouses and six private and semi-private elevators for resident safety, with prices ranging from $ 3.9 million to $ 7.5 million.

“This is the first step in bringing our world-class development to life and continuing to set a new standard for ocean living in Delray Beach and South Florida,” said Farina.

To make way for 1625 Ocean, the old Delray South Shore Club will be demolished over the next few weeks.

The devices are named after famous musicians such as Bob Dylan, Billy Joel, Bruce Springsteen and Janis Joplin. The three and four bedroom apartments range from 3,500 to more than 5,000 square feet of indoor and outdoor living space. The penthouses have a glass terrace with each bedroom and a private plunge pool.

Facilities include a pool and a poolside lounge suite with lockers, a fitness area and a biophilic garden. In the underground car park, residents have two parking spaces with an electric charging station and a golf cart space.

The company hopes 1625 Ocean will be similar to the Ocean Delray, another luxury development less than half a mile away and due to be completed soon. According to Farina, the project should be completed in December 2022.

US Construction has luxury developments in a variety of locations including Brooklyn, New York, Philadelphia, Pennsylvania, and Palm Beach County.