Hines and Frisbie Group have dropped $41.5M on a West Palm Beach development site where they intend to build the South Flagler House luxury condominiums.

The 3-acre property at 1355 South Flagler Drive is projected to house two 28-story buildings that will offer a combined 89 units, according to The Real Deal. According to legal documents, a $33.5M loan was taken out by the buyer from the seller, Palm Beach Atlantic University.

Floor plans will consist of three- and six-bedroom condos and penthouses and a seven-bedroom townhouse property. The design is by Robert A.M. Stern Architects.

Condo prices are expected to begin at $10M. Pricing for the penthouse options begin at $75M, according to a press release from Hines.

The property is currently the site of two vacant college dorms that were built in 1964.

Median home sales prices continue to skyrocket in West Palm Beach. The June 2022 Real Estate Market Report by the Florida Realtors shows a 23% increase in sales prices from last year in townhouses and condos. The number of days to contract has decreased by 50%, and inventory has also decreased 20%.

Home sales prices are 26.7% higher in West Palm Beach than in nearby cities, according to the Rocket Homes Real Estate Trends Report. That report also found that homes with five bedrooms or more, as Hines and Frisbie are largely targeting, are outperforming other unit counts — sales prices are up 77% year-over-year for homes with five or more bedrooms. The second-largest increase was 32.3% for two-bedroom units.