S2 Development and its joint venture partners BH-LK Investment Group said Tuesday they have begun demolition for their 41-unit waterfront condo project in Bay Harbor.

Aventura-based S2 developers Claudio Stivelman and Marc Schmulian told The Real Deal that they have contracts and deposits on 36 of O Residences’ 41 units. Prices are about $700 per square foot, or $700,000 to $1.2 million for the 1,060- to 1,450-square-foot units, said Stivelman, S2’s CEO. Two 2,282-square-foot penthouses, with three bedrooms and a den, are also offered for $1.58 million each. Groundbreaking is expected soon.

“Bay Harbor is a forgotten jewel,” Stivelman said. “We think Bay Harbor, by itself, is an amazing place, with an amazing waterfront and quality of life.”

In designing O Residences, at 9821 East Bay Harbor Drive, the developers said they aimed to highlight the water aspect, with each unit offering water views. Amenities include a zero-edge pool, bay front water deck, hot tubs throughout the property, cabanas and water sports such as kayaking, paddle boarding and canoes. O Residences will also have a waterfront, trellised summer kitchen with a gas grill.

In addition, the development, designed by construction architect Charles Benson and design architects Frankel Benayoun, will offer a natural eco-atrium with a green hanging garden trellis system to blend the outdoor elements with luxury living, the developers said.

Yet another feature: O Residences will have a partnership with Carefree Boat Club that will enable unit buyers to have access to a range of boats. Through an online system, residents will be able to book and pay for boats to be delivered at their dock, so they can enjoy boating without the maintenance and upkeep of owning a yacht, the developers said.

“We want to create a project that provides an upscale lifestyle,” said Schmulian, S2’s president, “but at an affordable price.”