Hyperion Group has secured an increased public subsidy for its delayed Ocean One project in Boynton Beach, following approval from the local Community Redevelopment Agency (CRA). The CRA agreed this week to raise incentives for the development to $11.5 million, up from a previous $9 million commitment. The term of the tax increment financing (TIF) agreement was also extended from 12 years to 14.
The mixed-use project is planned to include 371 residential units, 25,600 square feet of retail space, and a parking garage with 633 spaces. The site covers 3.7 acres at 114-222 North Federal Highway and was purchased by an affiliate of Miami-based Hyperion and New York-based Winter Properties for $12 million in 2021. Washington Real Estate Partners sold the property.
Originally approved by the city in 2023, construction on Ocean One was expected to begin in early 2024 and last two years. Arquitectonica is handling design work.
The new subsidy amount is less than what Hyperion had requested. Last year, the developer asked for a $16 million incentive and a term extension to 15 years, citing increased construction costs, ongoing inflation, higher interest rates, rising insurance premiums, and tariff uncertainties as factors undermining the project’s feasibility since the initial May 2024 agreement.
An independent analysis commissioned by the CRA and conducted by Abramson & Associates found Hyperion’s revised cost estimates “reasonable” and agreed that economic conditions had worsened since the earlier deal.
“CRAs can deploy taxpayer dollars to spur investment in redevelopment zones, often using TIF agreements to rebate a portion of future property tax revenue generated by developments,” according to city officials.
The site lies just north of downtown Boynton Beach within a designated redevelopment area spanning 2.6 square miles—a region attracting developers due to its location between Boca Raton and West Palm Beach.
City officials previously described the original $9 million incentive as the largest TIF package ever awarded by the CRA.
