Related Ross has secured a landmark $772 million construction loan, the largest ever in Florida’s history, for two new office towers in downtown West Palm Beach. This significant financing underscores the company’s ambitious plans to transform the city into a major business hub.
Key Takeaways
- A record-breaking $772 million construction loan has been secured by Related Ross.
- The financing is for two upcoming office towers, 10 CityPlace and 15 CityPlace, in downtown West Palm Beach.
- The loan was provided by a consortium of private credit lenders, including Ares Real Estate, Monarch Alternative Capital, and HPS Investment Partners.
- Both towers are slated for delivery in 2027 and have already attracted major tenants.
A Record-Breaking Deal
The substantial loan, arranged by Eastdil Secured, was provided by a trio of private credit lenders: Ares Real Estate, Monarch Alternative Capital, and HPS Investment Partners. This financing surpasses previous records, including a $668 million loan secured by Property Markets Group for the Waldorf Astoria Hotel & Residences Miami last year.
Future of Downtown West Palm Beach
The two new towers, 10 CityPlace and 15 CityPlace, are central to Related Ross’s vision for expanding the vibrant, walkable mixed-use district in downtown West Palm Beach. Executive Vice President Jordan Rathlev stated that these towers "define the next chapter of CityPlace, expanding a vibrant, walkable mixed-use district that is shaping the future of downtown West Palm Beach."
Major Tenants Secured
Related Ross has already made significant progress in leasing the space within the new towers. ServiceNow has committed to 200,000 square feet in the 470,000-square-foot 10 CityPlace, planning to establish its regional headquarters there by 2028. Additionally, Cleveland Clinic has signed on to anchor the 490,000-square-foot 15 CityPlace with a 120,000-square-foot outpatient facility, offering services such as chemotherapy, infusion therapy, and outpatient surgery.
Broader Development Vision
This record loan is part of Stephen Ross’s larger initiative to invest $10 billion in transforming West Palm Beach into the "Wall Street of the South." The company is actively working to attract technology companies, aiming to make the city a new tech hub. Related Ross has also delivered other successful projects, such as One Flagler, which is nearly fully leased to financial firms. Furthermore, Ross has personally invested in educational initiatives, including a $50 million commitment to Vanderbilt University’s West Palm Beach campus and funding for a private K-12 school, to support the growing workforce.
Sources
- Related Ross secures record-setting construction loan, The Business Journals.
- Stephen Ross Gets Largest Construction Loan In Florida History From Ares-Led Group, Bisnow.