This West Palm Beach condo is facing what many aging buildings are: costly repairs and post-Surfside compliance. But unlike most, there is a $295 million buyout offer on the table. For some owners, that is not enough.
- BEKO Equities extended its $295 million buyout deadline at Portofino South amid ongoing disputes.
- The offer averages roughly $2.1 million per unit, but Florida law requires 95% owner approval to terminate.
- One unit is currently listed for around $740,000, nearly a third of what the buyout would pay.
Portofino South is a 140-unit waterfront condominium at 3800 Washington Road in West Palm Beach. Built in 1971, the building sits on the Intracoastal Waterway directly across from Mar-a-Lago, adjacent to the El Cid and SoSo neighborhoods. That location has attracted BEKO Equities, now offering $295 million to buy out all owners. According to The Real Deal, the offer amounts to approximately $2.1 million per unit. But Florida condo termination law requires 95% owner approval, and support has stalled around 60%. When the offer first surfaced, the association president called the building a "jewel" and vowed to fight the sale. Months later, the gap between 60% and 95% remains the story.
Why is 95% approval so hard to reach?
Florida's condo termination statute sets the bar intentionally high. A single owner refusing to sell can block a deal if enough others join them. At Portofino South, roughly 40% of owners have either rejected the offer, remain undecided, or are holding out for better terms. Some are emotionally attached to a building they have lived in for decades. Others may be betting that BEKO will raise the price. A few may simply not want to move.
The building went up in 1971. It needs an estimated $12 million in structural repairs. Under Florida's post-Surfside safety laws (SB 4-D and SB 154), older buildings face stricter inspection and reserve funding requirements. Owners who reject the buyout still face those assessments. The math favors selling, but math is not the only factor.
As Larry Mastropieri explained on the Discover South Florida Podcast: "There is one unit listed in Portofino South around $740,000 while BEKO has an offer out that averages around $2.1 million per unit. If you are a speculator and study the condo documents, you might look at that and say, maybe I can buy this and eventually sell to BEKO for much more. But also they can back from the buyout, and then you are stuck with a unit and the coming assessment cost. It is super speculative, but that is an angle."
What is BEKO Equities trying to build?
BEKO Equities is a joint venture between Gilbert Benhamou's Miami-based Immocorp Capital and Hong Kong's O.D. Kobo. The firm originally offered $430 million to acquire both Portofino South and the neighboring Flagler Yacht Club (179 units combined across seven acres of Intracoastal waterfront). That combined deal has not closed either.
The land is the prize. Portofino South sits directly across from Mar-a-Lago, adjacent to the El Cid and SoSo neighborhoods. Vacant waterfront parcels no longer exist in West Palm Beach. The only way to assemble this kind of site is to buy out aging condos and co-ops, which is exactly what developers have been doing up and down Flagler Drive.
Own a condo in an aging waterfront building? Talk to a West Palm Beach real estate agent who understands condo terminations and buyout strategies. Reach out to The Mastropieri Group or call (561) 556-9853.
How does this compare to other West Palm Beach buyouts?
Portofino South is one of several condo buyouts reshaping the West Palm Beach waterfront. Here is where others stand:
Southbridge (3915 S. Flagler Drive): Related Ross is completing a buyout of this 63-unit building for more than $42 million, roughly $700,000 to $941,000 per unit. The deal is expected to close, with condo termination and luxury redevelopment to follow.
La Fontana (3800 S. Flagler Drive): Unicorp National Developments paid $200 million for this 80-unit co-op. Co-ops have lower voting thresholds than condos, which made the approval process easier.
Harbor Towers (3901 S. Flagler Drive): Fort Partners is buying out this 61-unit condo for approximately $100 million after winning a bidding fight against Related Ross.
Flagler House (3705 S. Flagler Drive): Kolter and Perko bought out this 38-unit building for $37.6 million and are now planning a new 18-story tower on the site.
The pattern is clear. Developers are paying three to five times market value for waterfront condos with assemblable land. Portofino South fits the profile, but the 95% threshold is holding up the deal.
Watch the Full Discussion: This Segment | Full Episode | Last Week's Recap
Frequently Asked Questions about Condo Buyouts in Florida
What percentage of owners must approve a condo termination in Florida?
Florida law generally requires 80% to 100% approval to terminate a condo association, depending on the building's governing documents. Many older buildings, including Portofino South, require 95% owner approval. This high threshold protects minority owners but makes bulk buyouts difficult to complete.
Why are developers paying above market value for aging condos?
Vacant waterfront land no longer exists in most South Florida cities. The only way to assemble large parcels is to buy out existing buildings. Developers pay premiums because the redevelopment value of the land far exceeds what the current units are worth. For owners, this can mean receiving two to five times what their unit would sell for on the open market.
What happens if a condo buyout fails?
If a buyout fails to reach the required approval threshold, owners keep their units and the building continues operating. However, they still face any pending repairs, special assessments, and compliance costs under Florida's post-Surfside safety laws. In some cases, these costs can exceed $100,000 per unit.
What is SB 4-D and how does it affect condo owners?
SB 4-D is Florida legislation passed after the Surfside condo collapse that requires stricter structural inspections and reserve funding for buildings three stories or taller that are 30 years old or older (25 years if within three miles of the coast). Buildings that fail inspections or cannot fund reserves may face expensive repairs or, in extreme cases, evacuation orders.
What is Portofino South in West Palm Beach?
Portofino South is a 140-unit waterfront condominium built in 1971 at 3800 Washington Road in West Palm Beach. The building sits on the Intracoastal Waterway across from Mar-a-Lago. BEKO Equities has offered $295 million to buy out all owners, but the deal requires 95% approval and has stalled at around 60% support.
Local help for condo owners in West Palm Beach
If you own a condo in an aging waterfront building, understanding your options matters. Whether you are weighing a buyout offer, considering a sale, or evaluating assessment exposure, talk to someone who tracks these deals. Reach out to The Mastropieri Group, Realtors®.
For practical, hands-on support in West Palm Beach, call (561) 556-9853.
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