Developer BGI Capital completed a $40.9 million acquisition of a development site adjacent to its nearly completed waterfront West Palm Beach condo tower, Alba Palm Beach.
Records show the Miami-based developer, led by Kenneth Baboun and Robert Barthelmess, bought the properties at 4720, 4802 and 4804 North Flagler Drive from Justo Naranjo, Beatriz Corrales, and Nataly Nicole Corrales for $33 million.
The purchase includes a waterfront single-family home and the 11 remaining units in the 4800 North Dixie condominium complex. That’s in addition to the five units BGI bought for $7.9 million in 2023, according to property records.
The property is adjacent to BGI’s Alba Palm Beach, a 22-story, 55-unit condominium set for completion this spring. Alba is 70 percent pre-sold, Baboun confirmed. BGI financed the purchase with a $25.6 million loan from a Linkvest Capital affiliate, according to property records.
The sites total 2.2 acres and 200 feet of waterfront, Baboun confirmed.
The developer is in the approval process for a second condo project tentatively dubbed Alba Reserve and slated for 31 stories and 87 units, according to city planning documents. BGI tapped Carlos Ott and Spina O’Rourke + Partners as the architects for the project. The tower will rise 360 feet, and units will be larger than in the adjacent Alba project, with square footage starting at 3,000 square feet, he confirmed. Baboun is also considering branding the project.
“It’s early to know what it’s going to be,” he said. “I’m in concept design, this is the exciting part.”
While the project is in early stages, Baboun made clear he is going for a luxe client with a bigger budget than his first West Palm Beach tower, where prices started at $2.5 million.
“We’re going high end all the way,” he said, noting the strength of the market over $6 million.
Naranjo is a local resident and real estate investor with a portfolio of properties throughout Palm Beach County, records show. He and his wife Beatriz Corrales bought the single-family home at 4720 North Flagler Drive for $1.7 million in 2014 and have it homesteaded.
After the developer acquired the 1.7-acre Alba site for $5.8 million in 2020, Naranjo and his family members started acquiring units in the neighboring condo buildings, anticipating future developer interest. Records show they spent about $2 million buying the units.
The two planned towers are part of a deep pipeline of condo projects in West Palm Beach that total more than 2,000 units. The rapid market growth has raised speculation about possible saturation, but Baboun said he sees “depth” in the market.
“We’re conservative with our pipeline, we’re in no hurry to launch projects as we speak,” he said, adding that sales will not launch for this second tower for another year or two.
Baboun said he sees a severe shortage of existing waterfront condos in the city.
Other developers see it, too. Huizenga Holdings and Integra Investments are planning a $2 billion redevelopment of the waterfront around Rybovich Marina at 4200 North Flagler Drive that will include four towers with more than 660 residential units. Toronto-based Great Gulf is planning a 32-story, 97-unit tower at 5400 North Flagler Drive, a site it bought for $28.5 million in 2024.