Related Cos. kicks off sales of condos at South Flagler House. What's the starting price?

Related Cos. of New York is kicking off sales early this month at South Flagler House, an ultra-luxury condo project planned along the Intracoastal Waterway in West Palm Beach.

South Flagler House marks the global real estate firm's first residential condominium in Florida. The project also is a major expansion of Related's already heavy investment in West Palm Beach.

On a broader scale, the condominium marks another step toward the transformation of West Palm Beach into "Palm Beach West" — a residential enclave on par with its glamorous neighbor to the east.

Miami Dolphins owner Stephen Ross is chairman of Related Cos. and a part-time Palm Beach resident. Together with Related Urban CEO Kenneth Himmel, Ross is an enthusiastic developer in West Palm Beach.

South Flagler House, at 1355 S. Flagler Drive, originally was planned by Frisbie Group of Palm Beach and Houston-based developer Hines, but Related scooped up the project in August for $195 million.

In an August interview, Ross said he remained bullish about West Palm Beach's future despite economic warning signs, including high interest rates. "I really believe in West Palm Beach," Ross said. "It's going to become the model city in the country. It's going to attract more people and the growth will continue."

Related made these tweaks to South Flagler House project plans

After Related bought the three-acre South Flagler House site two months ago, the company tweaked the project's plans.

South Flagler House now features 108 units, up from 89 by Frisbie Group. But starting prices of $5.9 million are down from the heady $10 million level previously set by Frisbie Group.

Related Executive Vice President Bryan Cho, who moved to West Palm Beach from New York to oversee South Flagler House's development, said a minor redesign created a group of smaller residences featuring one- and two-bedroom units for less money.

Most units, however, are larger, with three or more bedrooms. These prices will range from $12 million to $18 million each.

For most of the 27 story towers, only two units will be built per floor. Already, some prospective buyers want to buy entire floors, either to keep as separate units or combine into one large space, Cho said.

Other buyers are eying the one-bedroom unit as a guest apartment on top of the purchase of a larger unit in the towers, he said.

In addition, there is one special penthouse for sale, created from the top two floors on the north tower. That unit is priced at $72.5 million.

The upper eight-figure price once was unheard of for West Palm Beach. But with the construction of The Bristol luxury condominium at 1100 S. Flagler Drive, and the sale of an entire floor for $42.56 million to a former Palm Beach resident, both sides of the Intracoastal now are considered ripe for attracting the wealthiest of buyers.

"The most abundant interest has been from people who already have a presence here, either on the island or elsewhere in Palm Beach County," Cho said.

Palm Beach West: How West Palm is becoming an extension of the island

From dorms to deluxe living along West Palm Beach's waterfront

In 2022, Frisbie Group of Palm Beach bought the former Palm Beach Atlantic University dormitories at 1355 S. Flagler Drive for $41.5 million, with plans to build the condo complex.

In early 2022, Frisbie Group's presales at South Flagler House hit $480 million for the units, with most selling for about $10 million. Penthouses were selling for a whopping $70 million each.

But a lawsuit by a rival developer stalled Frisbie Group's efforts to build the project. After more than a year of litigation, the lawsuit with Two Roads Development was settled in July for an undisclosed amount. Related bought South Flagler House the next month.

Condo will elevate the city, Ross said

Related is West Palm Beach's dominant real estate developer. For more than 20 years, the company has poured billions of dollars into the city.

The company's past projects include The Square, formerly CityPlace, and the Hilton West Palm Beach. Related also owns three Class A downtown office complexes, including CityPlace Tower, which it also constructed.

Today, Related is building three more office towers in the city, plus a mixed-use apartment, retail and office tower at 575 Rosemary in The Square.

In a statement, Ross hailed South Flagler House as a signature complex for the city and an important milestone for the company, which kicked off the city's renaissance into an emerging commercial powerhouse. "South Flagler House not only complements these achievements but elevates them with forward thinking design and a curated experience that only Related can offer,” Ross said.

More: Related pays almost $200M for former PBAU dorm site that will become luxury twin towers

Luxury living with every perk imaginable

"Every single lifestyle amenity space that can be imagined" will be at the South Flagler House, Cho said.

Sports and fitness amenities include a pickleball court, golf simulator, fitness center, Pilates studio and outdoor lawn for yoga. Swim and spa amenities include a 25-meter lap pool, private cabanas, salon, steam, sauna, treatment rooms and changing rooms.

Social amenities include event rooms with catering kitchen, private dining rooms, a cocktail lounge, an outdoor dining patio, a wine cellar dining room, a library, a media room and a card game room. There also is a games room that includes ping pong, billiards and foosball.

Suzanne Frisbie, a real estate agent with the Corcoran Group on Palm Beach, is handling sales. Frisbie is related to the family that owns Frisbie Group.

The luxury project was designed by Robert A.M. Stern Architects, marking the global architecture firm's first luxury residential high-rise in Florida. Stern is former dean of the Yale School of Architecture, and his firm has designed some of New York's most exclusive residential properties, including 220 Central Park South and 15 Central Park West.

Stern also is a longtime collaborator with Related and South Flagler House is the 17th project they have done together.

In addition to South Flagler House, Related plans to build a condominium tower on the north side of downtown, at 1901 N. Flagler Drive, where Temple Israel is located. The temple would move into the first few floors of the tower when completed.

Want to get The Dirt?

Stay up to date on South Florida's sizzling real estate market and sign up for The Dirt weekly newsletter, delivered every Tuesday! Exclusively for Palm Beach Post subscribers.

Construction on South Flagler House is expected to begin in 2024 and take about two years to complete.

Alexandra Clough is a business writer and columnist at The Palm Beach Post. You can reach her at aclough@pbpost.com. Twitter: @acloughpbp. Help support our journalism. Subscribe today.

This article originally appeared on Palm Beach Post: Luxury West Palm Beach condo by Related Cos. starts sales