Penn-Florida Companies sold its prized 1-acre development site at 375 East Royal Palm Road

BOCA RATON, FL — A major land transaction has reshaped the heart of Downtown Boca Raton real estate. Facing foreclosure, Penn-Florida Companies sold its prime 1-acre development site at 375 East Royal Palm Road for $27 million to SobelCo, a respected Boca-based builder known for its luxury residential and commercial projects across South Florida.

SobelCo also purchased an adjacent 0.2-acre lot at 343 East Royal Palm Road for $3.1 million, bringing the total to $30.1 million for 1.2 acres of premium land just steps from the Boca Raton Resort and Mizner Park. According to public records, Goldman Sachs financed the acquisition with a $10 million loan.

From Assisted Living to Luxury Residential Opportunity

Penn-Florida originally secured approval in 2017 to build a 193-unit upscale assisted living facility on the Royal Palm site and subsequently cleared the land. But amid rising interest rates, record-high insurance premiums, and climbing construction costs, the project never advanced.

In 2023, a Penn-Florida affiliate faced foreclosure by Safe Harbor Equity, a Miami Beach-based distressed-debt investor. The $27 million sale resolved the case, closing a chapter on Penn-Florida’s plans for the property while positioning SobelCo to redefine its future.

SobelCo: A Family Legacy of South Florida Development

For more than six decades, SobelCo has been a fixture in the Florida real estate scene, specializing in luxury residential, commercial, and mixed-use projects throughout West Palm Beach, Fort Lauderdale, and Naples. Known for its craftsmanship and integrity, SobelCo’s developments mirror the refined lifestyle expectations of South Florida luxury buyers.

The smaller adjoining lot at 343 East Royal Palm Road is already approved for a five-story, four-residence luxury condominium with a rooftop amenity deck—an approach consistent with Boca’s demand for low-density, boutique-style living.

For buyers looking to explore similar high-end properties, visit our curated Luxury Condos in Boca Raton section.

A Market in Transition — and Opportunity

This sale underscores a defining moment in Boca Raton’s luxury development market. While some developers are stepping back due to financial constraints, others—like SobelCo—are leveraging market volatility to acquire prime parcels and position for long-term gains.

As detailed in our recent Market Reports, Boca Raton continues to be one of South Florida’s strongest performing luxury real estate markets, fueled by domestic migration, limited inventory, and lifestyle demand.

The Worth Group Perspective

At The Worth Group, powered by Fortune Christie’s International Real Estate, we view this transaction as a clear reflection of Boca Raton’s enduring desirability. The area’s sophisticated buyer base continues to favor design-driven, low-density luxury living, and developers like SobelCo are meeting that demand.

Our team specializes in Boca Raton new construction and pre-construction sales, providing clients with early access to exclusive opportunities before they reach the public market.