Hyperion Group has secured an increased public subsidy for its delayed Ocean One project in Boynton Beach. The Boynton Beach Community Redevelopment Agency (CRA) this week approved a rise in tax increment financing (TIF) incentives to $11.5 million, up from the previously agreed $9 million, according to the South Florida Business Journal. The term of the TIF agreement was also extended from 12 years to 14 years.
The Ocean One development is planned as an eight-story building with 371 residential units, 25,600 square feet of retail space, and a parking garage offering 633 spaces. City approval for the project was granted in 2023. At that time, Winter Properties was part of the partnership alongside Hyperion Group. Construction had originally been expected to begin in early 2024 and last two years.
In 2021, an affiliate of Miami-based Hyperion and New York-based Winter acquired the 3.7-acre site at 114-222 North Federal Highway for $12 million from Washington Real Estate Partners.
Although Hyperion requested a higher subsidy—$16 million over a period of 15 years—the CRA approved a smaller increase and shorter extension than sought by the developer. In making its request last year, Hyperion cited “rising construction costs, persistent inflation, elevated interest rates, higher insurance premiums and uncertainty around tariffs,” which it said undermined the project’s financial feasibility.
An independent analysis commissioned by the CRA and conducted by Abramson & Associates supported much of Hyperion’s revised cost projections and found them “reasonable.” The analysis also agreed that broader economic conditions had worsened since the original agreement made in May 2024.
Previously, city officials described the initial $9 million incentive as the largest TIF package ever provided by Boynton Beach’s CRA.
The property is located just north of downtown Boynton Beach within a designated redevelopment area spanning about 2.6 square miles—a region that has attracted developers seeking less expensive land options between Boca Raton and West Palm Beach. Arquitectonica is designing Ocean One.
CRAs typically use taxpayer funds through TIF agreements to encourage investment in redevelopment zones by rebating part of future property tax revenue generated by new developments.
