Luxury properties are flying off the market in South Florida — and Delray Beach’s massive Atlantic Crossing is the latest development attempting to cash in on the influx of wealthy northerners.
Amid the scorching housing market, developers for the $300 million complex, located on Atlantic Avenue just east of Federal Highway, are recalibrating plans for their swath of luxury condominiums and will instead create fewer units that are larger and more spacious, which will carry more lucrative price tags.
“From where we were before, we’re seeing the market place for the higher-end condominium is really looking to be much larger than we originally planned,” said Paul Campbell, a representative for Atlantic Crossing, during a recent public meeting.
Atlantic Crossing, one of the biggest projects in the city’s history, is finishing up construction on the first phase of development, which will feature restaurants, shops, 83,000 square feet of office space and 261 luxury apartments.
The luxury condos by the Intracoastal Waterway will be the main focus on the second phase of development, which also will include retail and dining. After originally planning to build 82 units, Atlantic Crossing will instead reduce that order to 63 while keeping the same square footage.
One building will have 48 units, including six townhomes, with an average of 1,535 square feet. The biggest difference will be in the second building where the 15 condos will be more than twice as large, averaging 3,300 square feet.
A spokeswoman for Atlantic Crossing said pricing has not been determined yet for the condos, which are expected to be finished in 2024.
Elliot Koolik, principal for the Koolik Group and Founding agent at Compass Boca, has been specializing in luxury homes in Boca Raton and Delray Beach for over 30 years, said based on the market and a variety of factors, those types of condominiums would likely range per square foot from $900 to $1,200 — and could potentially be higher.
That means the higher-end units could potentially sell between $2.8 million to the low $4 million range.
The housing market has continued to surge in South Florida with people fleeing colder states up north, making downtown Delray Beach an especially attractive destination with its buzzing nightlife and proximity to the beach.
Koolik says South Florida has seen a “migration of wealthy people” who are realizing the benefits of living here, such as no state income tax, the sunny weather and lifestyle. With remote work becoming more frequent, those people are also seeking more space in homes, creating a demand for these larger units.
“There has been a reframing of how much space is enough,” Koolik said. “If you look in downtown Delray, there aren’t a lot of big apartments. They’re either rentals, small apartment, some one-off townhomes. You look at the Seagate area, which is certainly an affluent area. There’s townhouses for $4 million to $5 million, but there really aren’t any condos of any size at the next level. They’re just not there.
“I think it’s an interesting niche. People like downtown Delray a lot. But you couldn’t cater to that person, because they weren’t building that. I think it’s a good strategy.”
That infusion of wealthy northerners has created a demand for more luxury projects in Delray Beach — and developers have taken notice.
.Just south of Linton Boulevard, by the beach, 33 brand-new luxury condos are in development and selling for between $3.9 million and $7.5 million.
A 14-home gated community is in the works less than two miles north of Atlantic Avenue with pre-construction prices beginning at $3.25 million.
Additionally, 31 townhomes with price tags hovering above $2 million each are in development along Federal Highway just four blocks north of Atlantic Avenue.
