May 17–Make way for more luxury condos, this time in South Palm Beach. The site of the former Hawaiian Inn soon will be the location of 3550 South Ocean, a six-story, 30-unit condominium.
The project is the first new condo on Palm Beach island in more than a decade. And it will come with all the whistles: Floor to ceiling windows. Ceilings ranging from nine to 10 feet high. Private beach access. And an oceanfront swimming pool.
The developer is DDG, known for working closely with artists on its residential buildings in New York and California.
DDG Chairman and Chief Executive Joe McMillan said Monday that the property offers a unique setting, right on the ocean. “When it comes to real estate, location is everything,” McMillan said. Despite some softening in the Miami condo market, McMillan isn’t concerned about selling out 3550 South Ocean, where prices will range from $2.3 million to $3.5 million.
McMillan said the island of Palm Beach has a great deal of cache but no new condos. “So there’s pent-up demand for new construction,” he said, particularly in that coveted 33480 island zip code. The exception to the luxury condo drought in the area is The Bristol, an ultra-luxury West Palm Beach condo.
Last week, developers of the 25-story, 69-unit condo held a groundbreaking. Units range from $5 million to $22 million each.
But McMillan said 3550 South Ocean and The Bristol are entirely different.
“The Bristol is being developed in West Palm Beach. On the mainland,” McMillan said.
3550 South Ocean, on the other hand, is “on the Atlantic Ocean, with views of the Intracoastal Waterway,” McMillan said. “It has direct ocean access.”
DDG just unveiled the condo’s website, and refundable reservations of between $10,000 and $25,000 will be accepted soon. Pre-sales are expected to start later this year and construction likely will start in the summer, with completion set for late 2017 or early 2018.
McMillan expects to sell units to locals, people who have second homes in the area and some international buyers as well.
The 3550 S. Ocean Blvd. site formerly was home to the Palm Beach Hawaiian Oceanfront Inn and designed in a Polynesian style.
Over time, it became known simply as the Hawaiian Inn and featured a popular waterfront restaurant.
The property was purchased years ago by an investor group that wanted to build a 14-story condo hotel. But the property fell into bankruptcy.
In 2012, a DDG affiliate paid $8.25 million for the property, and the hotel was knocked down last year.
This is the first foray into Florida by DDG, a New York and San Francisco-based company that blends high-end residences with art world collaborations. The company’s website says it has acquired, designed and developed more two million square feet of property on the East and West Coasts.