Pompano Beach, a once-quiet fishing town in Broward County, Florida, is in the middle of a multibillion-dollar transformation that’s turning it into one of the hottest luxury real estate markets on the East Coast.
A $2 billion downtown overhaul is underway, anchored by a 75-acre redevelopment led by RocaPoint Partners in partnership with the city. The plan calls for roughly 4 million square feet of residences, shops, offices, hotels, civic buildings and public space, with a new City Hall at the center.
Along the oceanfront, brands including Waldorf Astoria, Ritz-Carlton, W and Armani/Casa are building projects that would have seemed out of place in Pompano just a decade ago.
Miami-based Related Group is leading the charge with a multibillion-dollar commitment to the city. The company’s bet on Pompano started in 2011, when it bought the oceanfront site that would become its Solemar development at a courthouse auction and held it for nearly ten years before building.
“We saw the fundamentals early: incredible oceanfront, a great location between Miami and Palm Beach, and pricing that was still accessible relative to other South Florida coastal markets,” said Patrick Campbell, senior vice president of Related Group.
“We actually bought the oceanfront site that would eventually become Solemar at a courthouse auction in 2011 and held onto it for nearly a decade. At the time, Pompano wasn’t yet viewed as a luxury destination, but we believed the ingredients were there.”
The bet paid off. Solemar, Related’s first Pompano project, sold for about $900 per square foot, according to Campbell. Sales at the company’s under-construction Waldorf Astoria Residences Pompano Beach are now running roughly double that, at $1,800 per square foot. Related sold two penthouses in the Waldorf tower this summer for $17.1 million and $18.1 million, setting new price records for the city.
“Those numbers tell us buyers are willing to pay for exceptional product here, but there’s still a significant pricing gap between Pompano and comparable branded oceanfront residences in Miami or Palm Beach. That’s what gives us confidence there’s still room for the market to grow.”
The Waldorf tower, a 28-story building developed by Related and Merrimac Ventures with Hilton, will hold just 92 residences and is set for completion next summer. It’s Waldorf Astoria’s first standalone residential project, and more than 85% of its units were already under contract by the time the building topped out in May. Amenities include a 20,000-square-foot oceanfront pool deck, spa and wellness facilities, concierge service and in-residence dining.
Related is also building the W Pompano Beach Hotel & Residences, while other developers have brought Ritz-Carlton and Armani/Casa projects to the city.
Buyers are coming from well beyond South Florida. Campbell said the company continues to see strong interest from the Northeast and Canada, along with local buyers from South Florida and inland Florida who want oceanfront property. Interest from Latin America and other overseas markets is also growing, particularly for the W development.
Despite the wave of luxury brands and big-money buyers, Campbell said Pompano isn’t trying to become a copy of its glitzier neighbors.
“I don’t think Pompano needs to become the next Miami or Palm Beach … that’s what makes it interesting. It still has that relaxed, Old Florida beach-town character, but the level of product and hospitality is changing dramatically.”
“Five years from now, I think you’ll have a much more established luxury destination while still being able to walk down to the pier, go fishing and feel like you’re in a real beach town. The city is changing, but it’s retaining its character — and that balance is what will continue to differentiate Pompano.”
