Boynton Beach bought a 14-lot assemblage near the Interstate 95 ramp for $15.4 million in two deals.
The purchases came after reporting that The Starboard Group brokerage, which represented the sellers, passed out “talking points for public comments” in support of the purchase during a city meeting last year. The Boynton Beach Community Redevelopment Agency, a taxpayer-funded city board, is the buyer.
William A. Cunningham III of Starboard at Coldwell Banker Realty said the deal gives the city control of the future redevelopment of the sites, which are the “gateway” to the city.
In the most recent purchase, the Boynton Beach CRA paid $7.3 million this month for 13 lots on the southeast corner of West Boynton Beach Boulevard and Northwest Third Street, according to records. That assemblage spans 3.3 acres.
The sellers are KMG Holdings, YLS Holdings and 3139 Lake Shore Drive, all tied to Kirill Vesselov, who leads real estate investment firm KMG Holdings and is the former CEO of addiction and mental health treatment center Haven Health Management, property and state corporate records show.
Vesselov amassed the properties in multiple deals from 2014 to 2023 for a combined $5.6 million, according to records.
The properties are at 221 Northwest Third Street; 404, 416, 432, 444 and 450 West Boynton Beach Boulevard, 411, 421 and 449 Northwest First Avenue, and 203 and 215 Northwest Third Street, as well as vacant lots without addresses. Some of the parcels have small apartment buildings, homes or office buildings.
The CRA voted on Feb. 10 in favor of the purchase, including reallocating $2.5 million from a parking garage line item in its budget toward the acquisition, meeting minutes show.
The total $7.3 million price is less than the lots’ appraised value of $7.7 million.
The purchase came after the Boynton Beach CRA paid $8.1 million in October for the 2.1-acre site at 480 West Boynton Beach Boulevard, formerly home of the 101-key Inn at Boynton Beach that was demolished in December. The seller was Irache Partners, led by Ajit Asrani, records show.
The deals give the CRA roughly 5.4 acres of land, which the city reportedly wants to put out for a request for proposals for redevelopment.
Starboard was part of a campaign to urge city officials to purchase the sites, including the “talking points” distributed at the CRA meeting, WFLX reported in July.
“It just gives the city a better chance to control the destiny and future of Boynton Beach to make sure they get what they want there,” Starboard’s Cunningham told The Real Deal. “When they do an RFP for the developers, they can come up with the proper plan that is beneficial to the community.”
Boynton Beach is experiencing redevelopment, including a planned eight-story, 465-unit apartment building on tap at 120 Southeast First Avenue within the Town Square development. Time Equities scored a $160 million construction loan for the project from M&T Bank this month.
The first phases of Town Square already are completed, including a city hall, library, park and amphitheater. Last year, TM Real Estate Group landed $53.5 million to build the 250-unit Shalimar at Boynton Beach garden-style apartment complex in the city.
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