Commentary: British tycoon plans boutique hotel next to Boca Resort

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Commentary: British tycoon plans boutique hotel next to Boca Resort

By Alexandra Clough

Palm Beach Post Staff Columnist

Sunday, February 26, 2006

A new hotel soon could be going up in the shadow of the landmark Boca Raton Resort and Club.

British property tycoon Cyril Dennis plans to build a 118-room boutique hotel at the northeast corner of Camino Real and Federal Highway in downtown Boca, according to Jorge Camejo, Boca Raton's development services director.

The hotel will be part of a complex of shops and condos that one observer said will be "like Rodeo Drive," a reference to the upscale shopping thoroughfare in Beverly Hills.

The project, tentatively dubbed Via Mizner, will include walkways, a piazza and lots of open space. The idea is to create an elegant southern gateway to the city.

Dennis' move is more evidence that nearly any property has potential for developers wanting to build enclaves for the rich. Just last week, WCI Communities Inc. and the city of West Palm Beach confirmed plans to bring a luxuryhotel and condosto West Palm by knocking down the city's current city hall complex.

The Dennis project, parts of which will rise nine stories, will require bulldozing office and bank buildings on Federal Highway. But the hassle must be worth it. The tract is next to the Boca Raton Resort and has coveted golf course views. Not surprisingly, some 192 condos are planned along the course, according to plans filed with the city.

Dennis, who owns an apartment in Boca Raton, is worth an estimated $200 million and is regularly listed as one of Britain's wealthiest sons. (Dennis was out of the country last week and couldn't be reached for comment.)

Camejo said Dennis' project will bring much-needed hotel rooms to the city. That's especially true now that the Bridge Hotel will be turned into condos by its new owner, Billden Boca Bridge LLC.

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Word is that builder Dan Catalfumo is leading a group of investors willing to make a new pitch to Briny Breezes, the mobile home park with the coveted oceanfront address.

Briny's original suitor, Ocean Land Investments, just withdrew its offer to buy the town after hearing Brinyites might want to see who else is out there.

It's a risky move when you consider the unlikely scenario of anyone else topping Ocean Land's eye-popping $500 million offer. But Catalfumo reportedly plans to sweeten the deal by increasing the price and including Briny residents in the design of the town's redo.

Sources say Catalfumo and his investors, among them former protege Randall Greene, are quietly working to assemble more investors. (Neither Catalfumo nor Greene would talk about their hush-hush deal.)

In Catalfumo's favor: He has inside knowledge of the Ocean Land deal, having been a silent partner in the group that Ocean Land assembled for its bid.

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It's hard to have a Boca address and not have a Boca "look."

So in what could be the most expensive face-lift ever to take place within city limits, The Blackstone Group will spend $20 million to upgrade its prized asset, the T-Rex Corporate Center.

The objective: Make more money by charging higher office rents.

The land around T-Rex recently was in the spotlight as Boca city leaders tried to steer The Scripps Research Institute there. County commissioners ended up picking Jupiter's Abacoa as Scripps' HQ.

But T-Rex's buildings still have a lot to offer businesses. The property is the birthplace of IBM's personal computer. Now it's home to many established and growing companies. And 250,000 square feet remain available for lease.

Cosmetically, though, T-Rex looks dated. "The conference center still has IBM finishes on it. It needs a freshening up," said Jeff Kelly, a CB Richard Ellis broker who handles leasing at T-Rex.

A name change to include the word "Boca" and oust the dinosaur monikeris planned. (T-Rex isn't named for an ancient carnivore, by the way. It stands for telecom routing exchange, the business of the prior owners.)

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You would think developers building condos in West Palm Beach would take a breather from this crazed real estate market. But as we mentioned above, no building is off-limits for developers who think they can make money by building more condos. For example:

.Kolter Property Co. is working on a deal to buy Palm Beach Motorcars at Dixie Highway and Okeechobee Boulevard. Kolter just wrapped up One City Plaza and now is building the 467-unit Two City Plaza across the street. Kolter rep Mary Kay Willson confirmed the deal but said it isn't yet final.

.Merco Group of Miami in December paid Good Samaritan Medical Center $3.5 million for an office building on Palm Beach Lakes Boulevard. Plans are to build a 100-unit luxury condo sometime in the future. Merco is already building Palladio Terrace on Flagler Drive in West Palm Beach.