West Palm Beach developer says grocery store is coming to 8111 S. Dixie on city's south end

The developer of a long-vacant lot in West Palm Beach’s booming south end said he is nearing a deal with a boutique grocery store to open at a key site considered the gateway to the city from Lake Worth Beach.

Patrick Koenig, co-founder of Flagler Realty & Development, said he is under a strict nondisclosure agreement that bars him from naming the store, but that the company’s real estate division has approved the location and a lease is being negotiated.

The grocer would occupy an estimated 15,000 square feet on nearly 7 acres that is also proposed for an eight-story apartment complex with 358 units, including 90 for workforce housing.

Koenig said the grocery store has asked to make the announcement when the agreement is finalized.

“I can’t even hint about who it is,” said Koenig, whose company is working with Woodfield Development to build the apartments and retail space at 8111 S. Dixie Highway.

The project, which faces a final rezoning and site plan approval Feb. 20 by the City Commission, will include an improved landscaped area along the C-51 canal for a public walkway and a dock for launching kayaks and paddleboards.

Koenig said he has also agreed to do roadway improvements and add bike lanes along adjacent Gregory Road and build a $20,000 Ben Carson Reading Room at South Olive Elementary School.

The plan has received overwhelming support at city meetings with about 25 people speaking in favor of it at a Feb. 5 commission meeting. They lauded the addition of more workforce housing and the creation of an estimated 570 jobs and said they hoped it would spur the same commercial projects in the south end as the CasaMara luxury apartments did along Dixie Highway closer to downtown.

Design shops, a Common Grounds Brew & Roastery coffee house, Tropical Smoothie Cafe, Joseph’s Classic Market and Pink Steak restaurant are among new retail businesses that have opened near the apartments since they started leasing in 2021.

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“This was a thriving area back in the 50s and 60s when I grew up and I look forward to having activity there again,” said Ray Dorsey about the 8111 S. Dixie Hwy. project at the Feb. 5 meeting.

Still, a handful of people spoke against the planned 358 units saying they were in favor of an original design for 210 units, which included 52 reserved for workforce housing. The project is in the popular South of Southern Boulevard, or SoSo, community.

“It was a great presentation for 210 units, we all liked the 210 units,” said Matt Luciano, who lives in the south end and is running against West Palm Beach Commissioner Christina Lambert for her District 5 seat in the March 19 election.

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Richard Pinsky, president of the South End Neighborhood Association (SENA), said an October vote by about 200 residents found 60% opposed to the larger development. The SENA board had previously endorsed the plan at 210 units, but voted to withdraw that approval after the community vote.

Pinsky said he’s concerned the plan hasn’t received appropriate vetting following the decision to increase the number of units by 70%. Scrutiny is especially warranted considering the future of Palm Coast Plaza is unknown, he said. The 65-year-old plaza, which is directly north of 8111 S. Dixie and is anchored by a Winn Dixie grocery store, was bought in 2022 for $24.7 million by Johnston Capital Partners.

“All I know is we are trying to protect our little bit of south end, which is getting very tony and very cool, but we are protective,” Pinsky said.

The pandemic-triggered migration to Florida has boosted a revitalization in the south end of the city. Because the area is not a historic district, homes can be razed and rebuilt with a more modern aesthetic. Design shops and new restaurants are opening along South Dixie to cater to those buyers.

“I’ve lived here for a long time and the traffic has just gotten horrendous,” said south end resident Richard Brown.

City officials are particularly interested in the project because it is a first impression for people driving north on Dixie Highway into the city. It is also on land the city purchased in 2012 for $2.85 million. The land will be sold to the developer once the project is completed for $10.5 million.

Adding a grocery store to anchor the development was a key part of the initial pitch to the city by Flagler Development when it won the approval to do the project in 2022, but it became less certain as the project progressed.

Koenig said he felt confident about the current negotiations.

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“We’ve been working to get a grocer in the site and we are optimistic that will occur,” said Harvey Oyer, an attorney representing the project at the Feb. 5 meeting. “We are hopeful we can bring confirmation about that to you soon.”

Kimberly Miller is a veteran journalist for The Palm Beach Post, part of the USA Today Network of Florida. She covers real estate and how growth affects South Florida's environment. Subscribe to The Dirt for a weekly real estate roundup. If you have news tips, please send them to kmiller@pbpost.com. Help support our local journalism, subscribe today.

This article originally appeared on Palm Beach Post: West Palm Beach development includes new 8 story apartment, grocery store