Destin · Condo Building
South Bay by the Gulf Condos for Sale
A 1974 condominium of 109 residences at 940 Highway 98 East in Destin, recorded over two parcels, the larger of which the county's mapping carries all the way to the Gulf shoreline while the smaller one never reaches the water.
1974
Year Built
109
Total Units
Yes
Gulf Front
Year built, floor and unit figures are as published by the sources cited at the foot of this page. Confirm them against the association's own documents during diligence.
About South Bay by the Gulf
The first thing this page had to settle was whether South Bay by the Gulf holds its own Gulf frontage, because the answer changes what a purchase includes. Okaloosa County's parcel roll carries the property under one legal name spread over two footprints, one of about 9.86 acres and one of about 1.51 acres, and the two behave differently against the water. Tested against the county's hydrography layer, the larger footprint shares a boundary with the Gulf polygon rather than merely sitting near it, which means the shoreline is the property line itself. A second record agrees: FEMA's effective mapping assigns parts of that same footprint Zone VE at base flood elevations of 12 and 15 feet, the wave-action designation, which the smaller footprint carries nowhere. The smaller one fails both tests. It does not reach the Gulf polygon at all, and its flood mapping runs to Zone AE at 9 and 10 feet alongside a 0.2 percent annual chance band. One thing does NOT separate the two, and an earlier version of this page said it did: the state's coastal construction control line crosses BOTH recorded footprints, so state coastal permitting jurisdiction reaches this property wherever in it a residence sits. The frontage is real, and it belongs to the larger of the two recorded parcels. What stands on that ground is spread out rather than stacked. The roll returns 109 residence parcels, every one recorded at a 1974 year built, with no later phase carrying a different date. The county maps building outlines across the two parcels, and the largest covers roughly 5,800 square feet, which is a house-sized footprint rather than a tower's. All 109 residences share a single street address, 940 Highway 98 East, and take unit numbers from one sequence that runs straight through instead of restarting at each level. Height is the one thing the county file cannot tell you. Its address layer carries a level attribute that reads the same single value on all 111 rows at this address, which is what that field holds where no level was recorded rather than a measurement of the building, so nothing in the county record establishes how many stories this property stands. That question is worth pressing, because Florida's structural and balcony inspection duties for buildings of three stories or more turn on the answer, and it has to come from the association's own file rather than from the map. The water inside the property is not this property's alone. A mapped water body of roughly nine and a half acres crosses the larger parcel, and the same polygon also crosses the recorded common ground of the Dunes of Destin plats next door, plus one house lot there. Shoreline Towers I through IV adjoin on the other side.
HOA & Fees
The maintenance surface is unusually spread out for a property of 109 residences: separate building outlines scattered across two recorded parcels totalling roughly 11.4 mapped acres, plus a water body whose polygon does not stop at the property line. Ask how the budget divides between the two parcels, because only one of them meets the Gulf and therefore carries the salt exposure that comes with a shoreline boundary, while the state's coastal construction control line crosses both and so binds the whole property. Ask separately what the association's rights and obligations are on the shared water body, since the parcel record shows it crossing into a neighboring community's common ground and settles nothing about who maintains which bank.
Rental Policy
What the record settles here is neither height nor permission. The county's address layer carries the same single level value on every row at this address, which is what that field holds where no level was recorded rather than a measurement, so the balcony, stairway and railing certificate that Florida section 509.2112 imposes on public lodging establishments of three stories or more may or may not reach this property, and nothing reachable resolves it. Permission is a separate matter and no declaration for this condominium could be obtained, so this page takes no position on whether short stays are allowed. Two obligations exist regardless. Florida licenses a condominium residence let to transient guests as a class of public lodging under Chapter 509, applied for before the first booking rather than after it. And Destin registers short stays itself, under a city program whose eligibility follows a zoning district the city rather than the county assigns. Ask for the declaration, then the registration standing, then the height determination.
- Gulf shoreline forms the boundary of the larger recorded parcel
- One hundred nine residences, every one recorded at a 1974 year built
- Mapped building outlines whose largest covers about 5,800 square feet
- A mapped water body of roughly nine and a half acres crossing the parcel line
Live Inventory
Active Listings at South Bay by the Gulf

$589,000
940 Highway 98 Highway Unit 81
Destin, FL 32541

$624,900
940 Highway 98 Unit 99
Destin, FL 32541

$425,000
940 Highway 98 Unit 33
Destin, FL 32541

$335,000
940 Highway 98 Unit 23
Destin, FL 32541

$445,000
940 Highway 98 Unit 32
Destin, FL 32541

$495,000
940 Highway 98 Unit 16
Destin, FL 32541

$538,400
940 Highway 98 Unit 36
Destin, FL 32541

$599,000
940 Highway 98 Unit 82
Destin, FL 32541
The short-term rental badge above is not a permission of record. It reflects the MLS short-term-rental field where a listing discloses one, and otherwise where the home sits. Confirm the association's current rules and the local registration requirement before relying on it.
Building Answers
South Bay by the Gulf FAQ
Does South Bay by the Gulf hold its own Gulf frontage?
The larger of its two recorded parcels does. Tested against the county's water layer, that parcel's boundary and the Gulf polygon share an edge rather than overlapping, and FEMA's VE designations at 12 and 15 feet fall inside it. The 1.51 acre parcel meets neither test: it reaches no water at all and carries no VE polygon anywhere. The state's coastal construction control line is not one of the differences, because the county's geometry crosses both recorded parcels.
How tall are the buildings at South Bay by the Gulf?
Unestablished, and worth treating that way rather than assuming. The county maps building outlines whose largest covers about 5,800 square feet, which is house-sized rather than tower-sized, but a footprint is not a height. The address layer's level attribute reads the same single value on every row at this address, which is what that field holds where no level was recorded, so it measures nothing. Treat the number of stories as unestablished until the association's documents or an elevation certificate settle it, because Florida's inspection duties for buildings of three stories or more turn on that answer.
Whose water is the lake at South Bay by the Gulf?
Not solely this property's, by the mapping. The water body of roughly nine and a half acres crosses into the recorded common ground of the Dunes of Destin plats and one house lot there, so it is a shared feature rather than an enclosed one, and the parcel record allocates no rights on it.
Sources
- Okaloosa County IGIS: Parcels layer, legal name SOUTHBAY BY THE GULF (accessed August 21, 2026)
- Okaloosa County IGIS: WaterBodies layer, the Gulf polygon and the shared pond (accessed August 23, 2026)
- Okaloosa County IGIS: FEMA FIRM flood zone polygons over the two recorded footprints (accessed August 23, 2026)
- Okaloosa County IGIS: Coastal Construction Control Line segments crossing this property (accessed August 23, 2026)
- Okaloosa County IGIS: SiteAddress points at 940 Highway 98 East (accessed August 21, 2026)
- Okaloosa County IGIS: BuildingFootprints layer, the outlines on this property (accessed August 23, 2026)
- Florida Statutes 509.242 and 509.241, vacation rental classification and license requirement (accessed August 21, 2026)
- City of Destin: Register a Short Term Rental (accessed August 21, 2026)
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