City Commission Greenlights 28-Story Mixed-Use Tower on Clematis Street Corridor

West Palm Beach's City Commission voted 4-1 Tuesday night to approve the Harbour North development, a 28-story mixed-use tower proposed for a 1.4-acre site at the northeast corner of Clematis Street and North Flagler Drive. The project, backed by Miami-based developer Coastal Ridge Capital, will bring 312 residential units, 18,000 square feet of ground-floor retail, and a 420-space parking structure to a parcel that has sat largely vacant since a previous hotel proposal collapsed in 2019.

The timing matters. West Palm Beach has absorbed roughly $2.1 billion in new development investment since 2022, according to city planning department data, and downtown vacancy on the Clematis corridor has stubbornly hovered around 14 percent despite broader market optimism. City planners argued at Tuesday's hearing that a project of this density, positioned between the waterfront and the central business district, could anchor further retail recovery along a strip that lost several anchor tenants during the post-pandemic shakeout.

What's Going Up, and Where

The Harbour North site sits two blocks north of CityPlace, the 72-acre mixed-use district now rebranded as The Square, and directly across North Flagler Drive from the Intracoastal Waterway. The building's design, submitted by Fort Lauderdale architecture firm Moss & Associates, calls for a stepped facade to reduce visual bulk along the waterfront setback. Units will range from 650-square-foot studios listed at projected rents starting around $2,800 per month to three-bedroom penthouses expected to list above $8,500 monthly when the building opens, tentatively scheduled for Q3 2029.

The ground-floor retail component is already drawing interest. The West Palm Beach Downtown Development Authority confirmed this week that it has been in preliminary discussions with three prospective food-and-beverage tenants for the Clematis Street frontage, though no leases have been signed. The DDA, which manages roughly 50 blocks of the central business district, has flagged the northern end of Clematis as a priority activation zone in its 2025-2030 strategic plan.

Coastal Ridge Capital is no stranger to Palm Beach County. The firm completed the 192-unit Akoya Residences project on Okeechobee Boulevard in 2024, and its principals have been quietly assembling land parcels along the northern Flagler Drive corridor for the better part of three years. The Harbour North site was acquired in two transactions, the larger parcel in March 2023 for $18.4 million, a smaller adjacent lot in November 2024 for $4.1 million, both recorded with the Palm Beach County Property Appraiser.

The Numbers Behind the Vote

Commissioners who supported the project pointed to the city's own affordable housing data: Palm Beach County added approximately 28,000 new residents between 2022 and 2025, while permitted housing units over the same period totalled fewer than 11,000 countywide. The supply gap has pushed median asking rents in West Palm Beach above $2,600 for a one-bedroom unit, per CoStar Group figures from June 2026, a 31 percent increase from January 2022. The lone dissenting commissioner raised concerns about traffic impact on the Flagler Drive and Australian Avenue intersection during morning peak hours, citing a traffic study that projected a 17 percent increase in vehicle trips at that node.

Construction is expected to begin no earlier than January 2027, pending the issuance of a building permit by the city's Development Services department and the finalisation of a construction financing package. Coastal Ridge Capital has indicated it is in advanced discussions with two institutional lenders, though it declined to name them. Neighbouring property owners along North Flagler Drive have 30 days from Tuesday's vote to file any legal challenges under Florida's Administrative Procedures Act.

For residents and business owners along the Clematis corridor, the practical next step is watching whether the DDA's retail recruitment effort gains traction before construction fencing goes up. Ground-floor activation at street level will be a condition of the city's development order, a provision inserted at the request of the Downtown Development Authority, meaning Coastal Ridge Capital must demonstrate signed retail leases covering at least 60 percent of the ground-floor space before a certificate of occupancy will be issued.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.