A $202 million condo buyout offer is calling to the owners of a West Palm Beach building recently saddled with overwhelming costs, including a $12 million special assessment.
Immocorp Capital’s offer breaks down to an average of $1.4 million per unit to the ownership of South Portofino Condominium, the Palm Beach Post reported. If the owners accept the deal, it would rank as one of the most-expensive bulk condo buyouts in Florida history.
The 140-unit complex at 3800 Washington Road is across the Intracoastal Waterway from President Donald Trump’s home and private club, Mar-a-Lago.
Sky-rocketing home insurance costs and repairs required by Florida law after the 2021 collapse of Champlain Towers South in Surfside have resulted in ballooning maintenance costs and assessments for condo owners across South Florida.
Owners of the 54-year-old South Portofino recently faced a $12 million assessment for upgrades that include fire sprinklers and other infrastructure. Homeowner Jack Buyarski told the outlet his share of the cost was $100,000.
Annual maintenance costs exceed $20,000 for a third of owners, he said.
The offer from Immocorp is well above market value, Buyarski said. Homeowners will have the option to lease their units back under agreements that can terminate with 60-day notices.
The deal requires votes in favor by 95 percent of owners.
Jefferson Kiely is one of two real estate agents Immocorp hired to explain its letter of intent to buy the building.
Immocorp, led by Gilbert Benhamou, hasn’t revealed its plans for the property.
It is developing the Arte at the District in Northwood with 380 residential units and 65,000 square feet of retail and commercial space, according to its website.
The combination of scarce waterfront land and aging condos that require significant repairs and maintenance has led to a handful of high-profile buyouts in recent years.
Those include Related Group, Dezer Development and BH Group’s buyout of the Miami Beach Club in Sunny Isles Beach for $131.8 million last summer, clearing the way for a luxury condo tower.
— Rachel Stone