An estate in Fort Lauderdale, Florida, just set a record as the priciest house sale in the city, and its buyer has big plans for the $70 million purchase: Demolish it and build something new.
The property sits on nearly 3 acres at the confluence of the Intracoastal Waterway and the New River and includes more than 1,000 feet of waterfront, according to a statement Wednesday from The Elmes Group at Compass Florida. It includes a 20,000-square-foot main residence with six bedrooms, 11 bathrooms, a seven-car garage, and a four-bedroom, five-bathroom guest house.
"The views are absolutely epic," Tim Elmes of Elmes Group, who represented the buyer, told CoStar News.
The sellers were hedge fund founder and chairman Donald Sussman and his wife, real estate agent Michelle Howland. Howland served as the property’s listing agent, she said in an interview.
The transaction marks the sixth time Elmes Group has brokered the sale of the property since 1990, and it’s not the first time the property has broken a record with its sale price. In September 1990, Elmes Group handled the then-record $5.2 million sale to S. Robert Levine, co-founder of Cabletron Systems. When Sussman and Howland bought the home in 2016, it was for a then-record-breaking $27.5 million.
Though the buyer’s identity was not disclosed, the brokerage said the new owner plans to tear down the main estate for "a new, more modest home to be built on the property."
Tim Elmes said the new owner plans to build something in the range of 5,000 to 10,000 square feet.
"It's a very, very nice house," he said. "It's immaculate. It's just too big."
The plans for demolition are not a shock, according to Howland, who admitted she and her husband had even considered tearing down the residence to downsize.
“I’m not surprised because it’s such an iconic piece of land,” she told CoStar News. “I’ve been in real estate long enough and sold enough luxury houses that nothing surprises me.
As for the sale price of the property, Howland said the buyers “got a heckuva deal.”
The record-breaking property is in the Harborage Isle neighborhood, which is described by CoStar’s Homes.com as “a nautical paradise, perfect for boaters, yachters, seafood and beach lovers.” The average residential property is valued at nearly $4 million and the median age of homeowners is 63.
Luxury Destination
The deal further cements Fort Lauderdale’s “status as a sought-after destination for affluent buyers,” Elmes said in a statement. “The city's capacity to provide an exceptional level of luxury and sophistication is evident in its ability to attract such high-profile transactions."
During the nation’s historic housing collapse of 2006-2010, Miami was one of the nation's hardest-hit metropolitan areas. Once the market bottomed, foreign buyers swooped in, scooping up units on the cheap and eventually allowing developers to start the next construction wave in 2011.
As prices rose in Miami, investors moved north to Fort Lauderdale, saying it has much of the same appeal, but with lower prices. Commuter trains, including Brightline, connect Miami with Fort Lauderdale and West Palm Beach, making day trips convenient for South Florida residents and tourists.
"I think Fort Lauderdale, 20 years ago, would have had a much more difficult time getting recognized," Peter Zalewski, principal with the Miami-based CondoVultures consulting firm, told CoStar News. "But increasingly it's seen as one big metropolis."
In Broward County, where Fort Lauderdale is located, the luxury single-family house market is “characterized by sustained price growth and enduring demand,” according to a report from brokerage Engel & Völkers released last week. High-end waterfront properties in particular are in high demand.
“The lifestyle appeal of waterfront living, with access to private docks and proximity to beaches, remains a significant draw,” the report said. “Many high-end properties are viewed as safe investments, particularly in times of economic uncertainty or inflation, further driving interest.”