Luxury Condo Project on Surfside Collapse Site Fails to Attract Buyers
Damac Properties, a Dubai-based developer, paid $120 million in 2021 for the 1.8-acre site where Champlain Towers South collapsed, killing 98 people. The firm hired Zaha Hadid Architects to design a luxury tower with units starting at $15 million. A year and a half after launching sales, not a single unit has sold. Damac paused construction in February, citing difficulties securing insurance.
The firm has made inquiries about selling the site and is now seeking a partner to manage day-to-day development, according to people familiar with the matter. Damac set prices at $5,000 per square foot with an average unit cost of $35 million, above the neighborhood average of $4,466 per square foot. The developer also failed to reach agreement with victims’ families on incorporating a memorial into the project. Insurance brokers said the construction pause likely reflects Damac’s inexperience in South Florida and lack of a local partner.
Damac Chairman Hussain Sajwani viewed the site as a rare opportunity to enter the U.S. market at a favorable price. The site sits in Surfside, where the top 5% of condo sales reached $31 million or more in the first quarter. Fort Partners, a nearby developer, reported selling more than $2 billion in residential units in three months at its Four Seasons Surfside project.
The collapse marked its fifth anniversary this week and remains one of the deadliest structural failures in U.S. history. Damac was the only bidder for the site after a state court ordered its sale to fund a $1 billion settlement for victims’ families. Former Surfside Commissioner Marianne Meischeid said the developer’s handling of memorial discussions with families deepened local resistance to the project.
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