Developer BGI Capital and investor Wexcor Capital landed a $95 million construction loan for their planned waterfront condominium in West Palm Beach.
With the latest round of financing, BGI has borrowed a total of $177 million to build the 22-story, 55-unit Alba Palm Beach development. Miami-based BGI, led by Kenneth Baboun and Robert Barthelmess, partnered with Ron Wexler’s New York City-based Wexcor Capital to secure the second loan from Kriss Capital, according to a press release. Kriss Capital is a New York-based lender led by founder Jody Kriss.
BGI secured its first construction loan for $82 million from Trez Capital in April of last year. BGI and its development partner, Marcelo Tenenbaum and Jorge Savloff’s Miami-based Blue Road, launched sales of the planned building at 4714 North Flagler Drive that February, with prices starting at $2.5 million. Prices for units now start at $3 million, and the project is 45 percent presold, the release shows. Douglas Elliman is handling sales of the project.
The developers broke ground in August, and construction is expected to be completed in early 2025, according to the release.
Units at Alba will include two- and three-bedroom condos, and four two-story and three-story townhomes. Amenities in the building will include two pools, spa facilities, a fitness center, sports simulators and boat slips, according to the release. Buyers will also receive memberships to Palm Beach Yacht Club in West Palm Beach and the private flying service Magellan Jets, the release shows.
Demand for private clubs in Palm Beach County has boomed in the wake of pandemic-driven migration to the area.
Yet, rising construction costs and higher interest rates are threatening condo development across South Florida.
“There are projects that are sold out that might not get built,” Douglas Elliman agent Fredrik Eklund said at The Real Deal South Florida Showcase and Forum in Miami on Thursday.
West Palm Beach, long a desert of condo development, now has thousands of units in the works, as developers home in on the area’s price and demand growth.
Earlier this month, billionaire developer Steve Ross launched sales of his planned South Flagler House, a waterfront 28-story, 108-unit tower with prices ranging from $5.9 million to $72.5 million. In October, David Martin’s Terra and the Morrison family’s Sympatico Real Estate announced a planned Cipriani-branded 25-story tower with 110 hotel rooms and 146 condos. Toronto-based Great Gulf completed La Clara in August, a 25-story, 83-unit condominium that sold out for more than $209 million.