Condo owners are taking on the brunt of increased fees amid new rules aimed at making condo towers safer following the Surfside collapse in Miami in 2021. Now, the number of condos for sale is creating a local buyer's market, with lots of owners listing their units.

Still, new construction is proving desirable. Did you see those fancy new ones that recently fetched the highest condo price ever at the new Residences at St. Regis on Longboat Key?

Now here comes another new development, this time on the mainland at 625 S. Palm Ave. in downtown Sarasota. It's a five-story, mid-rise building that will have 12 residences, with three units on each of four floors above ground-level parking. Ground broke just last week, and units are expected to be move-in ready in roughly 18 months. Prices will start around $2.5 million. 

LV7 Palm Development, led by Colorado-based developer V.J. Chukkapalli, bought the site in 2022 for $3.55 million. Local firm Hoyt Architects is leading the design, which mimics much of the other new downtown condo construction: clean, simple lines in creamy whites with lots of glass. That makes sense—Hoyt is also the architecture firm on other high-profile luxury downtown Sarasota projects like Obsidian, One Park East, SOTA, The Jewel, The Mark and more.

Inside, spaces range from two-bedroom and two-bath units to three-bedroom and 3.5-bath units, from 2,439 to 4,451 square feet with private glass-railed terraces. Each residence includes two parking spaces.

“We’re designing these buildings to feel intimate and private,” says Gina Mazzoni, who, with Ray Collins, both of Coldwell Banker Realty, are leading sales. “You won’t be sharing elevators with dozens of people, and every unit will have a high-end feel, from Italian cabinetry to Wolf and Sub-Zero appliances.”

Amenities will include a zero-edge, heated saltwater swimming pool with cabanas, a sun shelf and a whirlpool spa; a fitness center and private meeting room for work-from-home needs; and a rooftop gathering area with fire pits.

Following this year's brutal hurricane season, which caused widespread flooding of homes near the water, especially on the barrier islands, will buyers be reluctant to make a move on such a close-to-the-water location? Or will there be an exodus of buyers fleeing flood zones in search of mainland abodes?

"I think a lot of people are waiting on their insurance to come through and stabilize. We’re expecting to see more people move away from the barrier islands and downtown to areas where they can still enjoy the water, marinas and access to the beach without living directly on the water," says Mazzoni. Another plus? "[This project] will also have a whole building generator, which offers peace of mind when the electricity goes out due to storms."

Mazzoni does concede that at the moment, there’s a pause in purchasing. "Rising insurance costs and condo fees are considerations, but Sarasota always keeps its charm," she says. "By [high] season, I think we'll see lots of movement again."

"The location is unbeatable. You can walk to the marina and bayfront or bike to Lido Beach or Burns Court," she continues. "There’s a real sense of privacy because you’re not right on Main Street."

Chukkapalli also has another similar project in the works at 621 Golden Gate Point, aptly named "The Point." It's also a 12-unit, boutique-style project, and it's expected to break ground in September 2025. The building will feature similar layouts and materials while introducing slight design variations. Chukkapalli bought that site in 2022 for $3.6 million. He also owns several other Sarasota properties, including Siesta Key Cottages, purchased in 2019 for $3.85 million. "I think the developer will continue down this path of boutique luxury buildings," Mazzoni says.

"The area has just exploded," she adds. "There are so many opportunities here with all that downtown offers, from the culture to how much it’s grown. It’s a big draw for developers and people moving here."

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