On South Flagler Drive, an Older Condo's Price Depends on Its Neighbors' Votes

Between 2021 and 2023, one investor bought units at Southbridge, a three-story building finished in 1981 at 3915 South Flagler Drive. According to The Real Deal, the average price was about $202,000 a unit. Related Ross's most recent purchase in the building covered 27 units for a combined $25.4 million, which works out to nearly $941,000 each. The units sit in a 1981 building on the Intracoastal, and the land under it is what Related Ross was paying for.

Compare that with the wider market. In September 2026, the median townhouse and condo sale across Palm Beach County was $310,000. Sellers received 93.2% of their original asking price, and the county had 6.8 months of supply, according to the Miami Realtors and RWorld September 2026 snapshot. That describes a market where condo buyers have room to negotiate. A short run of aging buildings between Monroe Drive and Southern Boulevard is following a different set of rules. There, a unit is valued as a share of a future redevelopment site, and two things decide that value: whether enough owners vote to sell, and what the city will allow on the land afterward.

Four Buildings on One Stretch of Water

These buildings sit across the Intracoastal from Mar-a-Lago, on the low-rise stretch of South Flagler Drive and Washington Road beside El Cid and Prospect Park. As of the most recent reporting, here is where each one stands.

The building between Flagler Yacht Club and the rest shows how this ends. Flagler House, a three-story condo at 3705 S. Flagler Drive, was bought out by PK Flagler LLC, a partnership of Perko Development and Kolter Urban. It was then torn down to make room for Maison D'Or, a 19-story tower. A Palm Beach Post story republished by the Boca Raton Tribune reported that residences there start at $5.7 million. Buyout offers on this stretch are priced against residences like those.

What Pushes Owners Toward a Sale

Developers have always wanted waterfront land. What has changed is the cost of continuing to own an old building, and Florida's post-Surfside laws set that cost.

Under Florida Statute 553.899, condo buildings three or more habitable stories tall need a milestone inspection at 30 years and every 10 years after that. If a phase-two inspection finds substantial deterioration, repairs have to begin within 365 days. Section 718.112 adds a structural integrity reserve study at least every 10 years. That study covers the roof, structure, fire safety, plumbing, electrical, waterproofing and windows. For budgets adopted on or after Dec. 31, 2024, owner-controlled associations generally cannot vote to waive or underfund those reserves. In 2025, HB 913 eased some of this. It allows a temporary pause in reserve funding for up to two annual budgets after a milestone inspection so that money can go to repairs first. It did not remove the repair requirement.

At Portofino South, those rules have produced real bills. The Real Deal reported that assessments on the 1971 building total about $10 million, including $3.5 million for elevator repairs. Owners who support the sale point to the building's condition, including broken air conditioning, exposed ceilings and closed laundry rooms. Against that, BEKO's offer averages about $2.1 million per unit. It started at $202 million in January and rose to $295 million over the summer.

So the same law pushes in two directions. It raises the cost of staying, which makes owners more willing to sell. It also makes the land more valuable relative to the building, which brings in more bidders. Flagler Yacht Club drew interest from four developers in a matter of months.

Seven Owners Can Stop $295 Million

The friction that surprises buyers comes from the termination math in Florida Statute 718.117. An optional termination of a residential condominium works like this:

1. A termination plan needs approval from at least 80% of the total voting interests.
2. It fails if 5% or more of the voting interests reject it, by vote or by written objection.
3. If a bulk owner holds at least 80% of the voting interests when the plan is recorded, the other owners must receive at least 100% of independently appraised fair market value. Qualifying homestead owners must receive at least their original purchase price.
4. Qualifying homesteaded former owners also receive a relocation payment equal to 1% of their allocated termination proceeds.

The 5% veto explains why The Real Deal describes the Portofino deal as needing support from 95% of owners. In a 140-unit building, 5% comes to seven owners. BEKO told the Palm Beach Post it had agreements with more than 60% of owners. Holdouts said more than 20 owners opposed the sale, according to a Palm Beach Post report republished by Yahoo. Supporters have also started a campaign to recall the board, citing assessments and cost overruns. The offer deadline is Nov. 3.

This is why developers pay a premium to finish fast. Every unit still outside the deal is a possible vote against it. The investor who assembled Southbridge units described the premium plainly to The Real Deal:

"They're paying for the premium of not having to wait, and having it done in one fell swoop."

Harbor Towers shows how that plays out. Two well-funded buyers competed for units there, and the rivalry ended in a lawsuit that has since been settled. The Real Deal reported that Fort Partners then bought Related Ross's 21 units for $20 million. That brought Fort to 60 units acquired since April 2025 for $79.7 million, about $1.3 million each, with one unit held by the condo association. In the same trade, Related Ross bought Fort's apartment properties at 3906 Washington Road and 3907 S. Flagler Drive. Each side gave up something to tidy its own holdings.

The City Paused the Next Step

A buyout price reflects what a developer expects to build. On this stretch, the rules for what can be built are being rewritten now.

On July 20, 2026, the West Palm Beach City Commission approved Ordinance 5177-26 on second reading. It bars new planned-development applications for listed properties south of Monroe Drive, north of Southern Boulevard, west of Flagler Drive and east of Washington Road. The list includes Harbor Towers, Southbridge, Portofino South and Flagler Yacht Club. The pause runs until Jan. 20, 2027 unless the commission extends it. The ordinance stops new development applications. It does not stop buyouts or terminations, so owners can still sell their units in bulk. What the buyer cannot do yet is file the application that would turn the site into a tower. The city is hiring Zyscovich to study the corridor's zoning and economics and to draft new regulations.

On Oct. 14, the city held a South Flagler Overlay District community meeting at the Saint Catherine Greek Orthodox Church hall, 110 Southern Boulevard. WPTV reported that more than 100 people attended. Staff focused on parking, density and height across the overlay's 12 acres. Attendees raised traffic, infrastructure and towers rising next to a 1920s neighborhood. One resident objected to a building of roughly 190 feet. The city expects to review its community survey feedback on Nov. 4.

The Portofino offer deadline and the city's survey review fall one day apart. Owners deciding on a $295 million offer have to decide before they know how tall a replacement building could be.

Reading a Listing in One of These Buildings

A unit for sale in one of these buildings has to be judged on more than its kitchen and its view. The facts that move its value are in the association's records and the city's calendar:

• Bulk ownership. How many units does a single buyer already hold? A building that is one unit short, like Harbor Towers, is in a very different position from one where a developer controls a minority.
• Pending offers. Is there an open offer or deadline, and how do the board and owners appear to be split?
• Assessments and studies. What do the most recent milestone inspection and structural integrity reserve study call for, and which assessments are already approved?
• Zoning status. Is the property on the Ordinance 5177-26 list, and what does the South Flagler overlay draft say once it is published?
• Homestead status. Would you occupy the unit as a homestead? The statute treats qualifying homestead owners differently at termination.

A buyer paying a land-based price for a unit in a building that never reaches termination ends up owning an old condo with new assessments. A buyer paying an ordinary condo price in a building that is close to a deal may be buying something worth much more. The listing photos look the same in both cases.

These laws and ordinances are complicated, and this post is general information, not legal, tax or financial advice. Before acting on termination rights, assessments or zoning, confirm your own situation with a Florida real estate attorney or another qualified professional.

If you own in, or are considering, one of the older buildings on South Flagler Drive or Washington Road, The Don Moore Team can help you understand where your building stands on bulk ownership, assessments and the overlay timeline before you set or accept a price. Request a Confidential Market Consultation, and we will review your building with you quietly and in detail.