Ritz Carlton in West Palm Beach: New condo could land in 'Miami of Palm Beach County'

In the latest sign of West Palm Beach's growth, the Miami-based Related Group is moving forward with a plan to build a Ritz-Carlton Residences condominium along the city's waterfront.

The 28-story tower would be built at 1717 N. Flagler Dr., just north of the downtown. The high-rise would feature 144 units priced from $2.5 million to more than $6 million. The project is by Related Group and BH Group, also a Miami-based real estate firm.

The Ritz-Carlton tower is a residential for-sale property. It does not have any hotel rooms.

But the Ritz-branded condominium means it will be managed to the specifications of the renowned luxury hotel brand. This includes pool attendants, valet staffers, concierge personnel and the legendary service that includes employees knowing residents by name.

Who will be buying into Ritz-Carlton West Palm Beach residences? A wealthy mix.

In an interview Wednesday, Related Chairman and Chief Executive Jorge Pérez said his company decided to move forward with the Ritz-Carlton Residences because he is impressed by West Palm Beach's recent growth.

Pérez cited the numerous companies that have expanded or relocated their offices to the downtown in recent years, as well as the high-paying executives and residents who have snapped up homes on nearby Palm Beach.

"We believe there will be a continuing demand from people moving here with high-paying jobs," Pérez said, "and there will be a continued demand for second-home owners that want to be in Palm Beach, as opposed to Miami."

This includes South American buyers "that would only go to Miami before and now are going to West Palm Beach," he said.

"So we see a great future," Pérez added.

Amenities, features at planned Ritz-Carlton include a contemporary art collection

Ritz-Carlton Residences West Palm Beach will range from two to four bedrooms, and from 1,600 square feet to about 3,500 square feet in size, he said. The building will feature custom Italian cabinetry, large balconies, high ceilings and amenities such as a pool and deck, a spa, summer kitchens and a 24-hour concierge.

The building also will feature a curated collection of museum-quality artwork in the common areas selected from the Jorge M. Pérez Contemporary Art Collection.

Pérez said this Ritz-Carlton project is special for two reasons.

It is the first branded Ritz project in West Palm Beach, a city the hospitality company has been eying for years.

In addition, the design of the Ritz-Residences is unique from other proposed condo projects in the city because the building will only feature east-facing views not blocked by other buildings.

"Every one of our units looks directly at the water," Pérez said.

The Ritz-Carlton Residences joins three other condo complexes planned for North Flagler Drive, a once-sleepy section of the city suddenly popular with real estate developers who covet the area's waterfront views.

More: Miami-light? West Palm Beach's waterfront draws new luxury high-rise towers

These projects could bring nearly 700 condo units to this one section of the city.

Developers' interest in building luxury high-rises is due to the influx of residents to West Palm Beach since the pandemic, the scarcity of waterfront land and recent zoning changes that allow tall towers in this part of town.

Pérez, known as the condo king, said he is aware of the competition, which could mean there might not be demand for more $2 million-plus condos.

"Do we have too much product? We might," Pérez said, but made clear Related Group isn't going anywhere. "I don't know if we're going to sell out tomorrow, but fortunately we have deep pockets and a long-term view of the market."

More: Related Group makes major return to Palm Beach County with Ritz-Carlton brand

Is Related jumping the gun by marketing to buyers before West Palm Beach city approvals?

For now, Related Group only is accepting $50,000 refundable deposits from buyers who want a spot in the planned condo tower. Real estate brokerage Douglas Elliman is handling the transactions.

Sales contracts aren't being inked yet because Related Group has not received approval from the city for the project's site plan. In fact, plans have not yet been submitted.

Nevertheless, Related Group decided to start taking reservations now to catch the attention of seasonal residents who leave South Florida at the end of March.

"We wanted to make sure we announced before the season is over," Pérez said.

Pérez expressed confidence the city would quickly approve plans for the high-rise. He said the tower will conform to city requirements and not seek variances, thereby increasing its chances for rapid approval.

The city recently extended a zoning district to allow the Ritz-Carlton site to rise 306 feet. This will allow the tower to rise 28 stories and offer panoramic views of the Intracoastal Waterway, Palm Beach and the ocean.

Nevertheless, the city's approval is not a sure thing.

Any project requires months of review by various city departments, as well as input from neighbors near the site, said Rick Greene, development services director for the City of West Palm Beach. If everything proceeds smoothly, the earliest the Ritz-Carlton Residences could be approved is July, he said.

Pérez said in the event the project is not approved by the city, reservations would be fully refunded.

Related Group has been eager to launch the Ritz-branded condo for the past two years. In early 2022, the developer first began talking about building a tall tower on the low-rise property, which Related Group purchased in 2021 for $13.9 million.

The west side of the site, 1701 N. Flagler Dr., consists of a low-income rental apartment complex. Perez said there are no plans to remove the complex.

If everything proceeds on time, construction could begin in early 2025, with the tower's completion expected in 2027, Pérez said.

Other planned West Palm condos are also scouting for wealthy buyers

Just north of the planned Ritz-Carlton, a condo complex called Shorecrest just started pre-construction sales. Prices for units there range from $2 million to more than $10 million.

Shorecrest is a project by Related Cos. of New York, led by Palm Beach billionaire and Miami Dolphins owner, Stephen Ross.

Shorecrest is being built on the Temple Israel at 1901 N. Flagler Dr. In an unusual arrangement, the 28-story condo will have 140 residential units, plus a newly-built temple at the base of the tower. A preschool also will be built on the west side of the building.

Ross' Related Cos. and Pérez' Related Group used to be affiliated, but the companies split a few years ago.

Now these former partners, and still lifelong friends, compete for deals, Pérez said.

Pérez acknowledged that Related Group even vied with Related Cos. for the right to develop the Temple Israel site.

Other condos planned for North Flagler Drive include Olara, a 275-unit condo at 1919 N. Flagler Dr., on the block north of the Shorecrest project; and Alba, a 55-unit boutique condominium planned farther north, at 4714 N. Flagler Drive.

If all the projects planned are built, what was once a low-rise section of office buildings and apartments could resemble a high-rise wall reminiscent of Miami.

While some nearby neighbors applaud the transformation of old buildings into gleaming edifices, others bemoan the obstructed views, the potential traffic and other crowding likely to take place if all the towers are built.

What makes any of these condos so special?

Because of the sudden competition for rich buyers, each condo is trying to distinguish itself as more than just a decorated box in the sky.

Special finishes and features are the lure.

Olara, for instance, recently revealed that acclaimed Spanish chef José Andrés will operate a restaurant in the complex.

Shorecrest touts its interior and exterior designs and proximity to downtown.

And the Ritz-Residences is a global brand renowned for its polished service and finishes.

Pérez said he's optimistic the Ritz in West Palm Beach will sell well because some buyers follow Ritz projects wherever they are built.

In addition, a group of investors, many of them from Latin America, regularly buy in Related Group projects.

Therefore Pérez predicted that buyers of the Ritz-Carlton Residences in West Palm Beach would be a 50-50 mix of investors, and full or part-time residents.

Pérez also downplayed competition from the Ritz-Carlton Residences Palm Beach Gardens, a 106-unit complex under construction by builder Dan Catalfumo along the Intracoastal Waterway. That property is a not a high-rise and is in a more suburban market, he said.

Related Group is Florida's condo king

More than 20 years ago, Related Group helped kick off downtown West Palm Beach's renaissance with its construction of numerous downtown residences, including The Slade, The Prado, and The Courtyards in CityPlace.

Related Group's last luxury condo in West Palm Beach was CityPlace South Tower, finished in 2008. Since then, the company mostly has built in Miami-Dade and Broward counties, becoming a major builder of luxury condominiums, especially along the water.

With the pandemic driving people from throughout the country to Florida, Related Group began a major move to expand in the state, including into Tampa.

The company also began building in Palm Beach County again, at first through its apartment division. New rental properties were built in Delray Beach, Boca Raton, Royal Palm Beach and West Palm Beach.

Related Group is eager to build more apartments in West Palm Beach. The company is part of an investment group that recently sued Palm Beach County over a stalled plan to build nearly 1,000 apartments on the western edge of downtown.

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: Jorge Perez Related to build Ritz-Carton Residences in West Palm Beach