West Palm Beach Condo Boom: What Buyers Need to Know

A wave of new condo developments is reshaping West Palm Beach, Florida, and buyers are moving quickly to secure units. Some projects are nearly sold out, while others are just breaking ground. Kourtney Pulitzer, a senior global real estate advisor with Sotheby’s International Realty, works with buyers in downtown West Palm Beach, on the island of Palm Beach, and in Avenir in Palm Beach Gardens. She says the building that comes up most often is South Flagler House, whose pricing starting near $10 million places it in the ultra-high-net-worth category. That has pushed many buyers toward other projects gaining traction. Mr. C sold through quickly, with only a handful of units remaining. The Berkeley and Shorecrest are drawing steady attention. The Ritz-Carlton Residences is almost completely sold out. Alba is finished, and buyers can move in now. Pulitzer notes that a finished tower like Alba and one arriving in three years are a similar comparison, since both are brand new. For many buyers, the deciding factor is how long they are willing to wait.

One group Pulitzer sees often is people who already live nearby, on the island of Palm Beach, where buildings are capped at five or six stories and zoning does not allow anything taller. “To get that elevation, vertical living, and those views, people are jumping over the bridge from Palm Beach to West Palm Beach,” she says. “They’re living on a nice high floor with a beautiful view, and they can walk downstairs to everything.” Seasonal buyers are another steady source of demand, arriving around Halloween and staying through April or June. Many deals close without a mortgage; Pulitzer says Palm Beach County is one of the strongest cash markets in the country. Her shorthand for financed buyers: marry the property, date the rate.

Buying pre-construction means buying something that does not exist yet, so the people behind a project matter. Pulitzer says standard diligence and research are the starting point. Buyers should find out who is financing the project, who the developer and contractor are, and what else they have built. She gathers much of that information directly—she recently had dinner with the head of Mast Capital, one of the firms behind Banyan Tree Residences West Palm Beach. “I know them personally,” she says. “I understand who’s putting up the money. I understand who the contractor is. I know what other buildings they’ve built.” Deposit schedules, delivery timelines, and what happens if a building runs late are all spelled out in the purchase contract. Pulitzer says the value of an experienced advisor is knowing where that contract has pressure points. “It’s understanding the things that can and cannot be negotiated, understanding the pitfalls and what could happen, and really understanding what you’re buying into,” she says. Before signing, buyers should read the deposit terms, the delivery language, and the remedies if construction is delayed, and ask which terms are open for discussion.