Kolter, Perko Buy Out West Palm Condo Near Mar-a-Lago

Kolter Group and Perko Group bought out a waterfront condominium in West Palm Beach, across the bay from President Trump’s Mar-a-Lago compound, with plans to redevelop it into a luxury condo development. 

The three-story building, called the Flagler House, was built in the 1960s and sits on a 1.4-acre site, housing 38 units at 3705 South Flagler Drive. The South Florida developers have already filed plans to build a 19-story development with 39 condo residences. 

The joint venture terminated the condo association this month after closing on 35 units in May, according to property records. CIBC Bank provided a $34.5 million loan. A representative for the joint venture declined to comment.

The deal is the latest example of condo terminations following the deadly collapse of the Champlain Towers South building four years ago in Surfside. The Florida Legislature passed laws mandating that owners of 30-year-old condos begin saving up for expensive structural repairs. Instead of paying up, some condo associations and owners have opted to sell to developers. 

Kolter and Perko’s project is also the latest example of luxury condos going up in West Palm Beach since the pandemic, when luxury housing supply dried up in neighboring Palm Beach.

Earlier this month, Stephen Ross obtained a $600 million construction package for a RAMSA-designed project. Earlier this year, Savanna secured $380 million to build a luxury and condo multifamily project. 

Along the same strip as Kolter Group and Perko Group’s project, Fort Partners, another major developer, has purchased a low-rise rental building, which will likely be redeveloped. 

Julia Echikson can be reached at jechikson@commercialobserver.com.