Pompano Beach, Florida, is increasingly establishing itself as a market for luxury condominiums. U.S. Development has successfully positioned itself here by selling high-quality, beachfront units. The company has completed construction of “Salato”, a project with 40 residential units at 305 Briny Avenue, and has already sold over 70 per cent of the units. Prices for these apartments range from USD 2.4 million to USD 5.3 million.
John Farina, CEO of U.S. Development, emphasises the exclusivity of Salato's amenities and services. These include cleaning service with linen change, grocery shopping and storage, wellness and beauty treatments at the in-house Salato Spa, fitness classes, personal training, and beach yoga.
Strategic Expansion in Pompano Beach
Asked about the decision to choose Pompano Beach, which had not been a luxury market for a long time, Farina explained that Pompano Beach appeared to be the next logical development when considering the general South Florida market. Its convenient location between Boca Raton, Delray Beach, and Fort Lauderdale meant that growth was “inevitable”. He pointed out that U.S. Development was not the first company to invest there; the Ritz-Carlton had arrived previously. Pompano had always been a “sleepy little town” but offered “some of the most beautiful beaches in Southeast Florida”. A great opportunity was identified, as prices were not yet so high, appealing to a broader segment of buyers. Pompano Beach was perceived as an emerging destination and thus a “great opportunity” for the company.
The uniqueness of Salato lies in its focus on privacy and intimacy, according to Farina. With only 40 units, the project offers four semi-private lifts and 14-foot-deep terraces, which are rarely found in larger buildings. The 20,000 square feet of amenities for just 40 units would create a feeling almost like living in a detached house, due to the low density. Furthermore, Salato features self-parking, which many other buildings do not offer.
Market Dynamics and Future Projects
Regarding the project's biggest challenges, Farina stated that there had not been “too many”. Pompano offered an opportunity for many buyers who might have been “priced out” of Delray Beach or Miami. There was an unexpected influx of buyers from the Miami market and the local market. Farina only saw negative aspects in the possibility that absorption might not have been as high as during the COVID era, but expressed satisfaction with performance compared to competitors.
Farina corrected the common assumption that the luxury market in South Florida had lost momentum. He emphasised that the often-expressed opinion by outsiders that Florida's prices had fallen or the market had become “softer” was a “fallacy”. Rather, there was a higher inventory of older properties, attributable to the Surfside collapse and new condominium laws. However, experienced buyers would recognise the advantage of new developments. New projects offered reserves and avoided the risk of costs due to certifications, which are due every ten years. This created trust and security when purchasing in a new development compared to the existing condominium market.
For the future, U.S. Development is not planning any further projects in South Florida. Instead, the company is developing a Viceroy-branded residential building in Clearwater Beach. This comprises two towers with 86 condominiums, a residents' restaurant, and over 20,000 square feet of amenities. These include a private beach club, a specially designed private beach on the Gulf, pool and beach service, a comprehensive spa, hot and cold plunge pools, sauna, steam rooms, a clubroom, a residents' lounge, a team centre, a golf simulator, and several bars on the premises. This is the first new development of its kind in this market in about 20 years, according to Farina, and represents something the market has not seen before.
