The Kolter Group and Perko Development Partners closed on the majority of condos at a Tequesta building where they plan to develop a taller project.
Delray Beach-based Kolter and Jupiter-based Perko acquired 11 of 12 units at Beach Sound, at 19930 Beach Sound Road, according to property records and information from the real estate database Vizzda. The developers paid $25 million for the units, or about $2.3 million per condo.
One remaining unit, owned by Edward and Karen Rado, is tied up in litigation. The Rados sued the condo association and the developers a year ago over the proposed buyout and termination of the association. The total expected purchase, including the Rados’ unit, is $27.3 million, according to Vizzda.
The four-story building went up on a 1.5-acre property in 1984. The developers plan to knock the building down and construct an eight-story, 12-unit condo project.
The plan also drew a legal challenge from neighbors.
Earlier this year, the adjacent Claridge Jupiter Island Condominium Association filed a petition for writ of certiorari against the developers and Palm Beach County over the proposed project. The suit, filed Aug. 22, alleges the county improperly approved a waiver requested for the project, and seeks to nullify the decision.
Neighbors who oppose Kolter and Perko’s project refer to it as “the Beast of Beach Sound” and claim it would “cast shadows on the Claridge pool, spa, fountains, sunbathing areas,” and lists the Claridge, Carlyle, Ocean Sound, Passages, Landfall and Sea Watch as opposed to the development.
Perko, led by Phil Perko, and Kolter, led by CEO Robert Julien, are working on another planned condo project. This summer, the partners paid $37.6 million to complete a condo buyout in West Palm Beach, where they’re planning Flagler House, a waterfront 18-story, 39-unit condo tower.
Condo buyouts can often take years, and they are notoriously tricky to complete. But in the wake of the deadly Surfside condo collapse and condo safety legislation requiring significant investment in aging buildings, some condo associations have opted to hire brokers to market their buildings for sale to a developer or bulk buyer.
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