Surfside Luxury Condos Struggle Despite Market Strength
The Delmore, a 37-unit luxury development on the former Champlain Towers South site, has yet to sell any units despite Surfside's condo market surge. The tragic history of the location presents unique challenges for developer Damac Properties.
A luxury condominium project planned for the site of Surfside's deadly building collapse has failed to generate sales since launching in early 2025, highlighting how tragedy can impact even the strongest real estate markets.
The Delmore, a 37-unit development, sits on the former location of Champlain Towers South, where 98 people perished when the building collapsed on June 24, 2021. The company acquired the oceanfront property for $120 million at a court-ordered auction in 2022, after being the sole bidder when no government entities made offers.
Jeffrey Rossely, senior vice president of development at Damac, attributed the lack of sales to multiple factors including a rushed initial launch and delays in completing the sales center. The company also walked away from contracts worth more than $200 million due to concerns about funding sources, despite buyer interest in units priced at $15 million and above.
The challenges facing The Delmore stand in sharp contrast to Surfside's broader luxury market performance. Condo sales in the area jumped 57 percent during the first quarter, while inventory dropped 25 percent, according to Corcoran Group data. This market strength pushed average condo prices to $6.1 million, representing a 23 percent annual increase.
High-profile transactions underscore the area's appeal to ultra-wealthy buyers. Former Starbucks CEO Howard Schultz paid $44 million for a penthouse at the nearby Four Seasons at the Surf Club in March, achieving nearly $8,000 per square foot. Even lower-level units in the same development commanded $4,400 per square foot, exceeding pricing at some beachfront new construction projects.
Damac remains committed to the project despite the initial setbacks. The company is resubmitting its master building permit while securing insurance coverage and selecting a general contractor. Rossely indicated that sales could restart by year-end, with potential joint venture partnerships under consideration.
The developer faces the unique challenge of marketing luxury residences on a site forever linked to one of Florida's most devastating building failures. A permanent memorial is planned at the intersection of 88th Street and Collins Avenue, adjacent to The Delmore site, following earlier unsuccessful efforts to convert the entire property into a memorial.
While buyers in the ultra-luxury segment continue purchasing at competing developments like Fort Partners' properties near the Surf Club, The Delmore's struggle illustrates how historical significance can influence market dynamics even in robust real estate environments.
Damac's persistence suggests confidence that the project will eventually find its market, particularly as Surfside continues attracting wealthy buyers seeking oceanfront properties. The company's willingness to explore partnerships may provide additional expertise and credibility needed to overcome the site's challenging history.
