Spec developer buys oceanfront Gulf Stream estate for $7.6M

Mansion sold for 24% less than its most recent asking price

May.May 18, 2017 04:15 PM

3777 North Ocean Boulevard in Gulf Stream. Inset: Derek Montgomery

Developer Robert G. Fessler recently bought a Gulf Stream oceanfront estate for $7.6 million, with plans to renovate and flip it.

The 14,000-square-foot mansion at 3777 North Ocean Boulevard sold for 24 percent less than its most recent asking price from January of $9.95 million, according to Redfin. It was listed for as much as $12.95 million in November 2015. The home’s last sale was $6.8 million in 2012, according to Palm Beach County property records.

Fessler made Palm Beach County history for the priciest spec house sold, earlier this year, when he sold a 1.5 acre mansion at 101 Indian Road for $49 million.

The recently acquired Gulf Steam property boasts more than 100 feet of water frontage. Fessler bought the property for $542 per square foot, and $435 per square foot for the land in total.

Derek Montgomery of Douglas Elliman’s Palm Beach office, was the broker.

He told The Real Deal that Fessler plans to completely renovate the home, which currently holds eight bedrooms, eight bathrooms and three half-baths, a movie theater, gym, and 30-foot vaulted ceilings with skylights.

Fessler “pretty much got it at land value,” Montgomery told TRD. “We want to renovate the roof, windows, plumbing, open up some rooms and add to the backyard.”

Recently, a nearby 2-acre estate at 3545 North Ocean Boulevard in Gulf Stream listed for $20.95 million.

Some Gulf Stream home prices have fallen, as of recently. A beachfront home located at 1255 North Ocean Boulevard, originally listed for nearly $19 million, sold for the reduced price of $16.45 million, in February.

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