Sales are open for new waterfront luxury condominiums in Palm Beach Shores

A developer is touting the tiny town of Palm Beach Shores on Singer Island as an area ripe for luxury oceanfront properties, with sales underway on one project and another in the early stages of planning.

The Atlantic Group of Companies opened sales this month on its new Pearl condominium with units starting at $4 million and going as high as $7.5 million for a penthouse unit in the six-story building.

Palm Beach Shores, which sits at the southern tip of Singer Island hugging the Lake Worth Inlet, also known as the Palm Beach Inlet, has about 1,400 residents and was called a “hidden gem” by Deepak Khosa, founder of the Atlantic Group.

The town is home to the Sailfish Marina, which opened in the late 1940s as Roy’s Dock, then became Bill’s Marina. In 1977, the marina was bought by the late Palm Beach inventor and entrepreneur Alexander W. Dreyfoos Jr. In July 2004, the property was sold to American Financial Group, according to the marina’s website.

Most of Palm Beach Shores is single-family homes with condominiums or hotel resorts lining the waterfront.

“We really believe in this area,” Khosa said. “It has a different vibe. It’s like an Islamorada charm without being in Key Largo.”

Khosa’s company bought the 57-year-old Seaspray Inn and Beach Resort at 123 Ocean Ave. in 2021 for $8.1 million. It is in the process of demolishing the building to begin construction in the first half of 2024 on the Pearl’s estimated 18 units. The project, which won approval by the city’s planning and zoning board in January, is scheduled for completion by the end of 2026.

Another Palm Beach Shores property at 320 Inlet Way was bought by the Atlantic Group in February for about $6.35 million from 10 individual condominium owners through a cooperative. Khosa said the plan is to rent the units for now, but then to eventually demolish the 65-year-old building for new construction.

Coldwell Banker Realtor David Custons, who specializes in Singer Island real estate, said it's only a matter of time before the area earns the nickname "Palm Beach North," similar to West Palm Beach's nascent monikers "Palm Beach West" and "Wall Street South."

"The area is still truly undervalued," Custons said. "Three is an influx of developers coming in, tearing down the homes from the 1960s and 1970s, and using the lot to put up new 4,500- to 6,500-square-foot homes."

The Pearl, which is being built just north of the Marriott’s Ocean Pointe Resort, will have units that range in size from 2,400 square feet to 7,000 square feet with two bedrooms to more than four bedrooms. Every unit will feature ocean views and will have both a semi-private and shared service elevator.

Community amenities will include a rooftop pool, steam showers, infrared saunas, fitness and yoga studios, a private dining room with catering kitchen, a full-time beach attendant, and a 24-hour concierge.

The town, which was founded in the late 1940s by international railroad and hotel builder A.O. Edwards, is perched on the north side of the inlet, putting it within easy boating distance of Palm Beach and West Palm Beach, Khosa said. There is no fixed bridge between it and the open Atlantic.

“This is one of the last spots where you can really do something a little more creative,” Khosa said. “There is a huge potential.”

Corcoran Realtors Harlan Goldberg and Jarrett Willis are handling sales of the Pearl. An estimated 100 people have expressed interest in the new project since its sales were opened this month.

While there has been pessimism in the real estate market as mortgage interest rates climbed, Realtors maintain the luxury market is not feeling the same concerns.

“There is no slowdown in demand for new construction on the water in South Florida, and Palm Beach Shores is the prefect enclave for both luxury and privacy,” Goldberg said in a statement. “Pearl was designed for those seeking a respite from big cities, but still within easy access of some of the best dining, shopping and entertainment.”

The Atlantic Group of Companies has a handful of other properties it has bought in Palm Beach County with plans for multi-family development, including nearly an acre at 4842 45^th St. west of Military Trail that it purchased in January for $950,000.