Consideration of the Purchase and Sale Agreement for 204 NW 1st Street

The property located at 204 NW 1st Street is a key acquisition due to its proximity to the BBCRA-owned properties located at 109 NW 1st Avenue and 209 and 217 N. Seacrest Boulevard (aka USPS) (see Attachments I & II).

The property was originally listed for sale at $1,025,000 ($78.44 per sq. ft.). An appraisal was prepared on June 13, 2026, using the sales comparison approach, which valued the 0.30-acre property (13,068 sq. ft.) at $850,000 ($65.04 per sq. ft.) (see Attachment III). Based on the appraised value, BBCRA staff negotiated a purchase price of $995,000 ($76.14 per sq. ft.), approximately 17% above the appraised value.

At its September 8, 2026 meeting, the Board requested that staff renegotiate the purchase price. Following the Board's direction, the Seller's broker agreed to reduce his brokerage fee by $10,000, resulting in a revised purchase price of $985,000 ($75.37 per sq. ft.), approximately 16% above the appraised value (see Attachment IV).

Since the September 8, 2026 Board meeting, staff received a valuation analysis calculating the average price per square foot of properties within the surrounding block, which established a value of $75.00 per square foot (see Attachment V).

At the revised purchase price of $985,000, the acquisition cost would be $75.37 per square foot.  This represents approximately 16% above the first appraised value of $850,000 and 0.5% above the value established in the second valuation analysis.

If the Board approves the purchase of the property, BBCRA staff requests authorization to coordinate a mutually agreeable closing date with the Seller within a reasonable timeframe, subject to approval by BBCRA legal counsel. All other critical terms of the Purchase and Sale Agreement remain unchanged.

A draft Purchase and Sale Agreement is provided as Attachment VI for the Board's review.

FY 2026-2027 Budget, Project Fund, Line Item 02-58200-401 - $985,000.00

2016 Boynton Beach Community Redevelopment Plan - Boynton Beach Boulevard Corridor

1. Approve the purchase of the property located at 204 NW 1st Street and authorize the Executive Director to set the Closing Date and to have signing authority subject to final legal review.

2. Do not approve the purchase of the property located at 204 NW 1st Street.

3. Provide alternative direction.