CDS International Holdings, the family office for the late billionaire Carl DeSantis, is converting its downtown Delray Beach office building into 26 luxury condos. The project passed the Planning and Zoning Board 7-0 and received City Commission approval in February 2026.
Key Takeaways
- CDS International Holdings will demolish its two-story office building and replace it with a four-story, 26-unit luxury residential building.
- The Planning and Zoning Board voted 7-0 in early 2026, and the City Commission granted Level 4 Site Plan approval in February 2026.
- The project follows Delray Beach's standard approval process and is led by the DeSantis family office.
CDS International Holdings has received approval to demolish its 11,144-square-foot two-story commercial building at 109 SE 5th Avenue in Delray Beach and replace it with a four-story, 26-unit luxury residential building. The project is led by Damon DeSantis (son of the late Carl DeSantis, billionaire founder of Rexall Sundown) and William H. Milmoe (President of CDS International Holdings).
The Planning and Zoning Board voted 7-0 in early 2026. City Commission Level 4 Site Plan approval followed in February 2026. Total new construction is approximately 98,000 square feet. The site sits blocks from Atlantic Avenue in the city's most active development corridor.
Why does this project matter for downtown Delray?
A vote of confidence: The DeSantis family's conversion of their own office building to luxury residential is the highest-conviction statement possible about the local market. They know this specific location better than any outside developer. When family offices convert their own real estate into luxury residential, they are betting their own capital on continued price appreciation in a neighborhood they have occupied for years.
Boutique scale is intentional: The 26-unit scale is not a compromise. Downtown Delray's boutique condo market is defined by projects with fewer than 30 units. Buyers here specifically avoid large, anonymous towers. The intimate scale is consistent with what the corridor's luxury buyers want and with what comparable projects in this corridor have achieved.
Standard public process: The project went through Delray Beach's standard public approval process. The 7-0 PZB vote and subsequent City Commission approval reflect that the project met the city's established design guidelines and land development regulations.
How does boutique scale affect profitability?
As Larry Mastropieri explained on the Discover South Florida Podcast: "Twenty-six units is not a lot, and that's part of what makes these smaller projects tricky. It costs a lot of money to prep the site, get through approvals, and actually build the thing. If the scale isn't big enough, the profitability doesn't always make sense."
Mastropieri added, "The bigger groups doing Ritz-level or Related Group-level projects are extremely capitalized and have done this a hundred times. Smaller boutique projects are a different animal. They can work, but the execution and cost control matter a lot."
Development cost context: At 98,000 square feet of total construction, development costs for a 26-unit luxury project in downtown Delray likely fall in the $30 million to $50 million range. The DeSantis family's self-development rather than selling the site signals confidence in the product and in Delray's continued price appreciation.
Considering boutique luxury condos in downtown Delray Beach? Talk to a real estate agent in Delray Beach who understands how pre-construction pricing compares to delivered inventory near Atlantic Avenue. Reach out to The Mastropieri Group or call (561) 287-7000.
How does this compare to other downtown Delray projects?
Closest comparables: The most direct comparable is Ónix Delray Beach, a 26-unit project three blocks from Atlantic Avenue, currently under construction with pricing starting at $1.549 million. That project provides a benchmark for what 109 SE 5th Avenue can reasonably achieve. On the same street, one block away, Fifth Avenue Townhomes is now under construction with five fee-simple townhomes starting at $2.8 million. Same corridor, different product type, and a stronger pricing reference for buyers at the upper end of the boutique luxury market.
Other comparables: 111 First Delray (luxury condos trading around $1,000 per square foot) and various boutique projects in the $1 million to $5 million range round out the picture. Similar conversions are happening throughout Delray Beach's development market.
Pricing expectations: Pricing for 109 SE 5th Avenue has not been announced. Given the location, boutique scale, and Level 3 architectural standards (praised by the PZB for high-end finishes and pedestrian-friendly streetscape design), pricing is likely to start in the $1.5 million to $2.5 million range per unit.
What is the timeline?
Next steps: With City Commission approval secured in February 2026, the project now moves to demolition and building permits, followed by a 14 to 22-month construction phase. Total project delivery could be late 2027 or 2028, depending on permitting timelines.
Office relocation dependency: CDS International Holdings' current office at this address must relocate before demolition can begin. The DeSantis family office and foundation have operated from this location for years. Where they are relocating has not been publicly reported, but this is a practical timeline dependency that precedes any groundbreaking.
Contractor status: No contractor has been finalized yet, which is typical for a project still in the pre-permitting phase. The construction timeline estimate assumes a smoothly run procurement process.
What are the risks?
Pricing risk: Pricing has not been announced. For a luxury project blocks from Atlantic Avenue with Level 3 architecture, pricing will be the defining factor in absorption. If they price above $2.5 million average in a market where most comps are $1.5 million to $2 million, they could face slow pre-sales.
Competition risk: Ónix Delray is already under construction with the same 26-unit scale. Fifth Avenue Townhomes is also under construction one block away at a higher price point. If either project delivers before the CDS project begins construction, it will absorb some of the same buyer pool.
Mitigating factors: The DeSantis family's long ownership of this site and familiarity with the Delray Beach market suggests they are well-positioned to execute. The project met the city's established standards and earned approval through the standard public process.
Watch More on This Topic
Watch: DeSantis Family Delray Project Segment ・ Full Episode: DSF Live Ep. 76 ・ Last Week's Recap: Ep. 75
Frequently Asked Questions
What is being built at 109 SE 5th Avenue in Delray Beach?
CDS International Holdings is demolishing its 11,144-square-foot two-story office building and replacing it with a four-story, 26-unit luxury residential building totaling approximately 98,000 square feet. The project received City Commission approval in February 2026.
Who is developing the 26-unit luxury condo in downtown Delray Beach?
CDS International Holdings, the family office for the estate of the late Carl DeSantis (billionaire founder of Rexall Sundown), is developing the project. Key figures include Damon DeSantis and President William H. Milmoe.
When will the Delray Beach luxury condo at 109 SE 5th Avenue be completed?
With City Commission approval secured in February 2026, the next steps are demolition and building permits, followed by a 14 to 22-month construction phase. Delivery is expected in late 2027 or 2028.
How much will condos cost at 109 SE 5th Avenue in Delray Beach?
Pricing has not been announced. Given the downtown location, boutique scale, and Level 3 architectural standards, pricing is likely to start in the $1.5 million to $2.5 million range per unit, consistent with comparable projects such as Ónix Delray Beach.
How does this compare to Ónix Delray Beach?
Ónix Delray Beach is a 26-unit project three blocks from Atlantic Avenue, currently under construction with pricing starting at $1.549 million. The CDS International project at 109 SE 5th Avenue has the same boutique scale and similar positioning, but is earlier in the development timeline. Fifth Avenue Townhomes, one block away on the same street, is also under construction at a higher price point starting at $2.8 million.
Local help for buyers and investors in Delray Beach
If you are buying, selling, or investing in downtown Delray Beach or anywhere near Atlantic Avenue, understanding how boutique luxury condos compare to larger developments matters. Reach out to The Mastropieri Group, Realtors®.
For practical, hands-on support across Delray Beach, call (561) 287-7000.
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