REO Land Sale to Bring Mizner-Esque Multifamily to Boca Raton

PALM BEACH, FL—Archstone New Development Holdings has a new project. The developer just snapped up a distressed 6-acre site known as Palmetto Promenade in Boca Raton for $20.1 million from a bank.

CBRE executive vice president Robert Given calls the Palmetto Promenade the most significant development opportunity in Boca Raton since the construction of Mizner Park in 1991. And CBRE senior vice president Richard Tarquinio, who worked with Given to market and negotiated the transaction of the site on behalf of an undisclosed seller, called it a rare opportunity.

“This original development rights were allocated for a project in 2006,” Tarquinio tells GlobeSt.com. “Then the market went sideways and that development was not done. The development rights went away. The new buyer that came in needed to present to the seller an idea of what they were going to build. Once a buyer was chosen they had to go through the process of getting those development rights reinstated. So it took some time.”

Time that may be worth the trouble in the long run. The land is currently zoned as DDRI (Downtown District of Regional Impact and R1D/DDRI (Residential Downtown District of Regional Impact). The project is located at 300–450 East Palmetto Road, in the center of Boca Raton’s $7.5 million Downtown Promenade project.

“This is truly an infill location with extremely high barriers to entry,” Given said in a statement. “New developments in the surrounding markets have been well-received and have experienced quick absorption rates. Thus, the premier location coupled with the lack of quality product in the market, continued decrease in the percentage of homeownership and upswing in the market cycle make this a compelling development opportunity.”

Plans for the property include a Mizner-esque multifamily complex that ties the street together from US 1 toward the ocean. The aim is to drive more pedestrian traffic and Tarquinio says the developer’s plans should accomplish that goal.

“The project has 859 linear feet along Palmetto Park Road—almost two city blocks,” Tarquinio says. “It’s going to replace some very old retail, some older houses, some of the other lots have already been cleared.”