For a West Palm Beach joint venture team, it’s out with the old and in with the new. Kolter Group and Perko Group bought out all the owners of a 38-unit condominium property (photo) on the Intracoastal Waterway in West Palm Beach. The group paid $37.6 million to buy out the condo owners and plans to build an 18-story, 39-unit project with nearly 1,000 square feet of retail space.

The South Florida Business Journal reports that the developers paid above market value for these 1985 condos. The deal was more about the value of the 1.43-acre site along the water than the existing building.

Condos in the new Flagler House would range from 2,770 square feet to a 10,150-square-foot penthouse. The building would feature a fitness center, a third-floor pool deck, a movie room, a club room, a lounge, a news café, a spa treatment room and 87 parking spaces.

SB Architects in Coral Gables designed the project.