Dan Kodsi, Founder & CEO, Royal Palm Companies

In an interview with Invest:, Dan Kodsi, founder and CEO of Royal Palm Companies, discussed key milestones, adapting to economic challenges, trends in multifamily housing, innovative mixed-use developments, and strategies for addressing environmental challenges in South Florida.

What were the key milestones and achievements for the company over the past year?

We’ve been involved in a variety of projects. For instance, we delivered an apartment project in Dania Beach. We also made some redesigns to our legacy project and expect to resume construction on that soon.

In Palm Beach County, we have a project that’s performing exceptionally well, and we’re on track to deliver it in the second quarter of this year. Meanwhile, in Aventura, we’re pursuing rezoning for another project. We’ve redesigned it to be appealing, and it’s shaping up to be a beautiful mixed-use development.

Additionally, over the past 12 to 18 months, we delivered some custom homes on Miami Beach, which we had invested in. We closed on two large apartment development projects in Orlando in the past 12 months, totaling over $200M in construction and consisting of over 700 units.  

How have recent economic trends influenced your development strategies and project focus?

Stabilizing inflation has been helpful, but the inflationary period was challenging for developers, especially mid-project, due to its unexpected severity.

Higher interest rates have also created difficulties. Thankfully, most of our projects were already under construction, avoiding the need for exits during this tough environment, which has been particularly challenging over the past 18 months. We were fortunate to exit four projects in early 2022 when the market was liquid, anticipating tougher conditions ahead.

In response, we shifted focus to Central Florida, developing garden apartments. As I mentioned previously, we have over 700 units under construction and expect to close on a $100 million project later this year. This move toward more conservative, low-rise developments addresses the high-interest-rate environment and challenges with high-rise projects.

What are some key trends you’re seeing in the multi-family space and what current market demands are driving growth?

We’re seeing strong demand for micro-condos, designed efficiently for dual purposes: nightly or annual rentals. Their affordability, with prices under $1 million, is a major draw. In contrast, larger units face challenges due to rising costs, requiring $2 million or more to be viable. The resale market, offering properties below current construction costs, adds further competition, so we’ve avoided this segment unless it’s ultra high-end.

We’re also focused on apartments but are shifting from high-rises to more cost-effective garden apartments or eight-story wrap buildings, where parking garages are separate. For example, we’ve adapted some South Florida projects to this wrap model, while in Central Florida, we’re sticking with traditional garden apartments. Regarding for-sale products in South Florida, we’re concentrating on units under $1 million.

In mixed-use projects, like those in Aventura and Downtown Miami, we’re incorporating significant commercial components. The Miami project features a large health and wellness element, while the Aventura project emphasizes retail, a market that is now stronger than it’s been in years.

How do you approach integrating diverse elements into your mixed-use developments to create cohesive and innovative community spaces?

Our legacy project integrates various health and wellness companies under one roof. These are actual longevity companies providing advanced preventive healthcare services, including cutting-edge technologies like MRIs and AI-driven diagnostics. We aren’t developing this technology ourselves, but we’ve curated a group of best-in-class organizations to lease space in the project.

The project also includes a hotel, micro-condos with flexible ownership options, restaurants, ballrooms, and event spaces. It’s a comprehensive mixed-use development, unlike anything that’s been done before. This isn’t just a luxury spa — it’s a fully integrated wellness ecosystem.

On top of that, we’ve partnered with one of the world’s top lifestyle hospitality groups to manage the hotel, ensuring a high level of service and experience. Bringing all these elements together creates a symbiotic relationship. For example, the gym will have a membership model, attracting locals who will also frequent the cafés and restaurants. This dynamic activity benefits the entire project, fostering a vibrant, interconnected community.

How is Royal Palm Companies addressing environmental challenges like sea level rise in South Florida?

Sea level rise is a significant challenge, and the region is adapting creatively. At Miami Worldcenter, for example, my partners floated bonds to rebuild infrastructure, raising the land to 13–14 feet above sea level and creating new sidewalks and plazas — setting a precedent for resilient development.

On Palm and Hibiscus Islands, where we’ve worked on custom homes, developers are required to raise seawalls by 2.5 feet and roads by two to three feet. These measures prepare the islands for future conditions, extending their viability by 80 to 100 years.

Our generation’s responsibility is to enhance the infrastructure built by previous generations. Two generations ago, this region was undeveloped — just forest and wetlands. They built highways, streets, and cities; now it’s our job to raise and strengthen that foundation.

We must also explore innovative ways to preserve our waterfront cities and homes, such as building higher seawalls, retrofitting structures, and mitigating risks. The beauty of South Florida is unmatched, and adaptation is key to preserving it for generations to come.

How is Miami’s real estate market expected to change over the next few years, and what trends do you anticipate for mixed-use and high-density developments?

Miami continues to evolve and build upon itself. When I moved here in the mid-’80s, there were no restaurants in Downtown, Brickell, or South Beach — Miami was essentially a suburban town with a small business district.

Today, it’s an incredible urban city. Miami Beach saw urbanization in the 1990s and 2000s, while Downtown and Brickell experienced unparalleled high-rise development. No other U.S. city has matched that level of vertical growth. This boom in residential units fueled thriving retail and hospitality industries, as rooftops — whether single-family or vertical homes — drove demand for groceries, restaurants, nightlife, and more. The walkability and vibrancy of these neighborhoods make them highly attractive places to live.

Now, Miami is mentioned alongside cities like Paris, London, and New York — an incredible achievement for a city that, just 20 years ago, was still finding its identity. This global recognition highlights how much Miami has grown and matured in a short time.

Looking ahead, what are your top priorities for the next couple of years?

One of our biggest challenges is managing costs — whether construction, capital due to higher interest rates, or rising insurance costs. Our priority is to adapt by designing more efficient, cost-effective projects.

For example, we’re focusing on low-rise or mid-rise developments instead of high-rises, which are less expensive to build and allow us to offer more affordable housing options. We’re also designing smarter floor plans to reduce unit sizes without sacrificing functionality. A one-bedroom unit that once required 700 square feet can now be effectively designed at 500 square feet, reducing costs and making homes more attainable.

Our goal is to provide housing that is both financially accessible and high quality, meeting market needs while ensuring financial success.