The developers of a new oceanfront condo project in South Palm Beach just signed off on a $13 million loan to fund costs as they near groundbreaking.
The loan covers about 1.1 acres of beachfront turf at 3550 South Ocean Boulevard, formerly the home of the historic Palm Beach Oceanfront Inn that was known locally as the Hawaiian.
Reliance Standard Life Insurance Company issued the funds to a company called 3550 Palm Beach Holdings, which state records show is headed by Gary Cohen and the Richmond Hill Investment Co.
Cohen confirmed the loan amount to The Real Deal and said it was to cover development costs. The ownership finished tearing down the Hawaiian several weeks ago after scoring approvals for their project.
Dubbed 3550 South Ocean, the six-story project will have 30 units that average 3,000 square feet, Cohen said.
Its design and finishes are still in the planning phase, though Cohen said the project will boast the standard array of amenities for a luxury building: spa, fitness center, possibly rooftop pools, plus direct beach access. Altogether, the project will measure about 150,000 square feet. He also said this will be the first oceanfront condo building to be built in South Palm Beach in the last 12 years.
“Anytime you get a chance to acquire a parcel on the ocean, that’s the first place you should always go,” he said. “There’s very much pent-up demand for new product on the ocean.”
As far as prices go, none have been released, but he said they will be in the neighborhood of $1,000 per square foot. Douglas Elliman’s Palm Beach office is handling sales.
The ownership brought on DDG, a New York investment and development firm, to head the project. DDG has been quietly working on the project, its first in South Florida, according to a news release from the company. The firm is acting as 3550 South Ocean’s developer, construction manager and design director.
Groundbreaking is slated before the end of 2016.