Palm Beach’s Spec Mansion Market

Palm Beach’s Spec Mansion Market

As the Town of Palm Beach continues to flourish and attract luxury buyers from around the world, savvy developers have seized upon the opportunity to build speculation or “spec” properties to meet demand. In some areas like North Palm Beach, older properties on large lots are being torn down to make way for multiple residences, while in others, once vacant parcels are being prepared for new home construction. Here is more on Palm Beach’s spec mansion market:

The Palm Beach Spec Market

A speculation or “spec” mansion is a property built to be move-in ready without a particular buyer. At one time, spec high-end residences were relatively uncommon in the Town of Palm Beach. When one appeared, these properties were likely to sell quickly and for top prices. However, since the Salt Tax Migration, Palm Beach County’s luxury real estate market has been competitive, and more spec mansions have been appearing.

Recently, a spec home at 446 N. Lake Way reportedly sold for $33.2 million, making it one of the most expensive lakefront speculation homes to sell in the Town. This property was one of two spec homes built on a lot where a previous owner had unsuccessfully attempted to sell his home three years prior. The forward-thinking owner had the residence torn down and marketed the property as two vacant lots.  Within six months, both parcels were sold. The recently sold spec mansion located at 446 N Lake Way is on the northern lot.

Just one mile from President Trump’s “Winter Whitehouse” at Mar-a-Lago, a 14,000 square foot, South Ocean Blvd spec mansion sold this year for $37.25 million. The eight-bedroom, French provincial-style oceanside home, was reportedly developed on speculation by English insurance magnate Sir Peter Wood.

Palm Beach’s North End has seen several successful spec mansion ventures since legendary musician Jon Bon Jovi purchased a home in the area. Recently, spec mansions were developed at 111 and 113 Atlantic Avenue, just down the street from the Bon Jovi property. The home at 113 Atlantic Avenue went under construction in April 2019 and was under contract by December 2019 for $9.41 million. The property at 111 Atlantic Avenue is currently listed at $14.9 million.

Spec mansions appear to be an increasingly popular venture in Palm Beach County, high-end real estate. As the Palm Beach market continues to attract out-of-state buyers, investors, and developers, spec mansions may increase the luxury property supply options in Palm Beach County.

At Rabideau Klein, David E. Klein Esq. and Guy Rabideau, Esq. are dedicated, Florida Bar Board-Certified Real Estate Attorneys with the local expertise and experience you need to ensure that your interests are protected during your Palm Beach County real estate transaction. Contact Rabideau Klein today to discuss your real estate legal needs.

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