The Kolter Group and Perko Development Partners have finalized the purchase of most of the condominiums at a Tequesta property, where they intend to build a taller residential project.
Kolter, based in Delray Beach, and Perko, headquartered in Jupiter, acquired 11 out of 12 units at Beach Sound, located at 19930 Beach Sound Road, according to property records and data from Vizzda. The developers paid a total of $25 million for the units, averaging about $2.3 million per condo.
The sole remaining unit, owned by Edward and Karen Rado, is currently subject to litigation. The Rados filed a lawsuit against the condominium association and the developers a year ago, contesting the proposed buyout and the dissolution of the association. Including the disputed unit, the total expected purchase price is $27.3 million, according to Vizzda.
The existing four-story building was constructed in 1984 on a 1.5-acre lot. The developers plan to demolish the current structure and replace it with a new eight-story, 12-unit condominium.
This redevelopment proposal has also sparked legal objections from neighboring residents.
Earlier this year, the Claridge Jupiter Island Condominium Association, which is adjacent to the property, filed a petition for writ of certiorari against both the developers and Palm Beach County in response to the proposed project. The lawsuit, filed on August 22, alleges that the county improperly granted a waiver related to the project and seeks to have the decision overturned.
Opponents from nearby buildings have dubbed the proposed development “the Beast of Beach Sound,” arguing that it would “cast shadows on the Claridge pool, spa, fountains, [and] sunbathing areas.” The Claridge, Carlyle, Ocean Sound, Passages, Landfall, and Sea Watch buildings are among those opposing the project.
Perko, led by Phil Perko, and Kolter, under CEO Robert Julien, are also collaborating on another condominium project. This past summer, the partners spent $37.6 million to complete a buyout of a condo building in West Palm Beach, where they are planning Flagler House, an 18-story, 39-unit waterfront tower.
Condo buyouts are often lengthy and complex transactions. In the aftermath of the Surfside condo collapse and the enactment of new safety legislation that requires substantial investment in aging buildings, some associations have chosen to hire brokers to market their properties for sale to developers or bulk buyers in order to address these challenges.
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