Over the years, the once beautiful Palm House has sat vacant in mid-renovation as real estate development efforts have started and ceased. In 2019, news broke that the property’s then developer Robert Matthews had pleaded guilty to criminal charges after defrauding investors out of millions of dollars. Matthews had taken investor funds that were supposed to be used to renovate the Palm House. The property ended up in a federal bankruptcy case, and after years of stagnation, the court upheld the bankruptcy sale of the Palm House to North American affiliate of London + Regional Properties, (L+R US Holdings LLC). Here are some new developments with the Palm House:
The Palm House Plans are Moving
When L+R bought the Palm House property for $39.6-million in a transaction approved by a US bankruptcy court in March of 2019, the deed was recorded in May 2019. However, the sale proceeds did not transfer until February 11, 2020. Wellington developer Glenn Straub attempted to stop the sale and outbid L + R but was unsuccessful. Although he appealed the bankruptcy court’s decision to deny his bid on the property, the appellate court did not find in his favor. With the bankruptcy case moving forward, and Straub apparently out of the picture, L+R has started to prepare for renovations.
The Palm House is Going to be a Luxury Destination Hotel
L+R announced that the company intends for the property to become a “spectacular” destination hotel. The concept behind the hotel’s design will be iconic luxury rather than that of conventional accommodation. The company owns several hotels, and the plan is for the Palm House to become one of its exclusive properties with higher-end features and luxury design.
Past Renovations are not Part of the Future
In 2014, the Palm House underwent some renovations to convert the structure into a hotel and condominium property. L + R has made clear that the hotel-condominium design is not going to be part of the Palm House’s future. The Palm Beach Architectural Commission pre-approved L + R’s main renovation plans as part of the bankruptcy sale. Any further modifications to the property are anticipated to be minor. L+R plans to have the renovations completed and the hotel ready for guests by the fall of 2021. Hopefully, the Palm Beach icon is on its way to being restored and brought back into use.
At Rabideau Law, we have extensive experience handling multi-million-dollar transactions for high-end real estate in the Palm Beach areas. Guy Rabideau, Esq. and David E. Klein, Esq. are Florida Board-Certified Real Estate attorneys with the expertise and local knowledge you need to ensure that your residential real estate transaction is conducted with excellence and precision. Contact Rabideau Law today to discuss your real estate legal needs.