Forest Development Secures $4.5M Riviera Beach Land Deal
Peter Baytarian's Forest Development will pay $4.5 million for 2.2 acres in Riviera Beach to build a 335-unit residential tower. The developer may also contribute to a fund helping residents pay rising water bills from the city's new $400 million treatment plant.
Forest Development has secured a deal to purchase prime real estate in Riviera Beach for $4.5 million, marking a significant investment in the city's ongoing residential development push.
The North Palm Beach-based company, led by Peter Baytarian, will acquire 2.2 acres at 1851 Broadway from city officials and the Community Redevelopment Agency. The purchase price corresponds to Forest's plan to construct 335 residential units in a tower reaching up to 20 stories.
Riviera Beach officials structured the pricing to incentivize density, with land costs ranging from $3.8 million for 300 units to a maximum of $7.8 million for 500 units. Each additional unit beyond 335 would cost an extra $20,000 in land price.
The selection process began when Baytarian made an unsolicited $3.5 million offer during summer 2024, prompting the city to open competitive bidding. Four other developers submitted higher financial offers, including Kenco Communities at $4.6 million and two firms at $4 million each. However, city officials chose Forest's comprehensive $325 million development proposal in November.
The approved project includes specific community requirements: at least 5 percent of units must serve workforce housing needs, with a minimum of 20 such units. The development will also feature over 17,000 square feet of retail space and more than 100 public parking spaces.
A notable aspect of the agreement involves potential contributions to assist residents with mounting water costs. Riviera Beach recently began construction on a $400 million water treatment plant after facing contamination issues and $1.2 million in state and federal fines during 2023. The plant's costs will drive residential water bills up 30 to 40 percent annually.
Council Member Bruce Guyton proposed that Forest contribute to a relief fund for residents struggling with these increases. Baytarian indicated willingness to participate in such an initiative, though specific amounts remain undetermined.
The city already collects $10,000 per unit in development fees as part of its community benefits program. This approach aims to address local needs in a community where poverty rates reached 18.4 percent in 2024, exceeding national averages.
Riviera Beach has actively pursued residential development to expand its tax base and create employment opportunities within the 8.3-square-mile municipality north of West Palm Beach. City officials view increased density as essential for economic growth while maintaining affordable housing options.
The December property appraisal supported the $4.5 million sale price, though previous assessments varied from $3.8 million to $6.5 million. The Riviera Beach Community Redevelopment Agency is expected to formally approve the 335-unit configuration and corresponding price.
This transaction represents part of broader redevelopment efforts throughout Riviera Beach, including ongoing plans for Marina Village's 12-acre waterfront section. The city continues seeking proposals that balance community needs with developer interests while addressing infrastructure challenges.
