Hyperion Group won increased incentives for its delayed Boynton Beach multifamily project in a deal presumed to be the local Community Redevelopment Agency’s biggest-ever tax increment financing agreement.
This week, the Boynton Beach CRA approved a bump to $11.5 million from $9 million for the project that’s expected to include 371 residential units, 25,600 square feet of retail space and a parking garage with 633 spaces, the South Florida Business Journal reported.
The CRA also extended the term of the TIF agreement to 14 years from 12.
The eight-story project, called Ocean One, has been in the works since at least 2023, when the city approved the development. Winter Properties was part of the partnership at the time. Construction was expected to start in early 2024 and take two years.
An affiliate of Miami-based Hyperion and New York-based Winter paid $12 million for the 3.7-acre development site at 114-222 North Federal Highway in 2021. Washington Real Estate Partners was the seller.
The increased subsidy is less than what Hyperion requested. The developer asked the CRA last year to raise the incentive to $16 million and stretch the deal to 15 years, citing a shifting economic landscape since the agreement was inked in May 2024.
The site is just north of Boynton Beach’s downtown core. Arquitectonica is designing the development.
CRAs can deploy taxpayer dollars to spur investment in redevelopment zones, often using TIF agreements to rebate a portion of future property tax revenue generated by developments.
Hyperion pointed to rising construction costs, persistent inflation, elevated interest rates, higher insurance premiums and uncertainty around tariffs, all of which it said had eroded the project’s feasibility, in its request for additional subsidies.
An independent analysis commissioned by the CRA and conducted by Washington, D.C.-based Abramson & Associates largely backed that assessment, finding Hyperion’s revised cost projections “reasonable” and concurring that broader economic conditions had worsened since the earlier agreement.
City officials previously described the $9 million incentive as the largest TIF package in the CRA’s history.
The property sits within Boynton Beach’s 2.6-square-mile redevelopment area, which has drawn interest as developers look for relatively cheap land between Boca Raton and West Palm Beach.
—Rachel Stone
