The Breakers expands its holdings on Royal Poinciana Way in Palm Beach with an $11.5M buy

The Breakers has once again expanded its real estate portfolio on Palm Beach’s Royal Poinciana Way, this time with a purchase recorded at $11.5 million.

Flagler System Management, a company affiliated with the resort, just bought a mixed-use property in the middle of the block at 249, 251 and 253 Royal Poinciana Way, the deed recorded Jan. 16 shows.

The property includes a trio of buildings with three storefronts and seven residential apartments on the town’s historic Main Street, which offers direct access to the Flagler Memorial Bridge. Property records show that all three buildings date from the 1920s.

The buildings have a total of 5,606 square feet. Based on that measurement, the property sold for about $2,051 per square foot.

Since 2010, companies affiliated with The Breakers have bought five properties on Royal Poinciana’s north side between Bradley Place and North County Road. In all, those deals have totaled about $55.5 million, courthouse records show.

The Breakers also owns the block of Royal Poinciana on the opposite side of the street between Cocoanut Row and South County Road. That land is part of the resort’s golf course.

The property that just sold is about a mile from the The Breakers’ historic oceanfront hotel building.

The storefronts are leased by the Samuel Owen Gallery and two clothing boutiques, Une Belle Trouvaille and Diane Firsten.

The property was sold by CSPB RPW LLC, a Florida limited liability company owned by a joint venture between Spencer J. Schlager and Charles “Charlie” L. Rosenberg, two Palm Beach real estate investors who own other properties in town.

Their ownership company paid $4.38 million for the property in February 2020, courthouse records show.

Schlager declined to discuss the transaction.

Paul Leone, CEO of The Breakers, issued a statement through a spokesperson. The street, it said, “is one of the most important locations on the island, and the acquisition of (Nos. 249-253) continues our mission to revitalize Royal Poinciana Way and the surrounding neighborhood.”

The Breakers and its properties in Palm Beach are owned by companies controlled by the North Carolina-based Kenan family. The Kenans are directly related to Mary Lily Kenan Flagler Bingham, the widow of railroad-and-hotel tycoon Henry M. Flagler, who in the late 19th century transformed Palm Beach into the nation’s premier winter resort town for the society set of the so-called Gilded Age.

Leone's statement acknowledged that the acquisition of 249-253 Royal Poinciana Way means The Breakers’ affiliate now owns two “contiguous” properties on the street, including a former PNC Bank building at 245 Royal Poinciana Way.

Flagler System Management in April paid a recorded $9.35 million for the former bank building, which stands immediately east of the property that just changed hands.

Because neither property has been designated as a town landmark, both or either could be razed and redeveloped under town law. Combined, their land measures about three-fifths of an acre, according to property records.

But Leone said the new ownership has “no near-term development plans” for the property it just bought.

“We will honor all commercial and residential leases, and if (the) commercial tenants don’t renew, we will continue to identify tenants that are town serving,” Leone said.

The statement continued: “Our investments in Royal Poinciana Way have been inspired by our dedicated family ownership; their long-term commitment and desire to enrich the community is fundamental to our organization’s business strategy and success.”

Farther east on the street, a company affiliated with The Breakers and Flagler System Management owns the ground-floor retail space and underground parking garage of the Via Flagler by The Breakers mixed-use development. The company paid $20 million for that property in late 2018, when the retail-and-condominium development was still in construction.

West of the building that just changed hands this week, Flagler System Management paid $11 million in April 2022 for a landmarked retail-and-office building at 283 Royal Poinciana Plaza on the corner of Bradley Place. That building is home to offices and longtime retail tenants that include the Sprinkles Palm Beach ice cream shop and RSVP Global Pack and Ship. The owner cannot significantly alter the exterior of the building without the permission of the Landmarks Preservation Commission.

The Breakers also owns 265 Royal Poinciana Way, which houses administration offices for the resort and was formerly the home of the Palm Beach Daily News.

Flagler System Management is a subsidiary of Flagler System Inc.

Companies controlled by Schlager and Rosenberg’s joint venture own Palm Beach commercial buildings at 324, 340, 350 and 440 Royal Palm Way along with a landmarked retail-and-office building at 214 Brazilian Ave. Their most recent acquisition was a blocklong commercial building at 375 S. County Road, which they bought through their CS Ventures for $18.336 million last July.

CS Ventures also owns a building at 500 S. Australian Ave. in West Palm Beach. In all, the joint venture owns about 300,000 square feet of commercial space, Schlager previously told the Palm Beach Daily News.

In his statement, Leone noted the revitalization over the past few years of the once-sluggish Royal Poinciana Way commercial district.

“What has transpired in this neighborhood in recent years is truly amazing,” the statement said.

The Breakers and its companies “are grateful" to town officials and others for their roles in building the latest version of the Flagler Memorial Bridge, which opened in 2017; and to the Preservation Foundation of Palm Beach for spearheading the renovation of Bradley Park on the west end of Royal Poinciana Way, Leone’s statement said.

He also mentioned Steve Karp of New England Development for renovating the landmarked hotel building that today houses the White Elephant and its restaurant, Lola 41, on Sunset Avenue, around the corner from Royal Poinciana Way; Samantha David and Lori Berg of Up Markets and WS Development for “revitalizing” the nearby Royal Poinciana Plaza shopping center; and residents Avi and Jill Glazer for “boldly and generously stepping up” to help ensure the future of the Royal Poinciana Playhouse.

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This story was updated from a previous version. This a developing story. Check back for updates.

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Darrell Hofheinz is a USA TODAY Network of Florida journalist who writes about Palm Beach real estate in his weekly “Beyond the Hedges” column. He welcomes tips about real estate news on the island. Email dhofheinz@pbdailynews.com, call 561-820-3831 or tweet @PBDN_Hofheinz.

This article originally appeared on Palm Beach Daily News: Breakers resort buys another building on major street in Palm Beach