RedSky-JZ Capital Secure $115M for West Palm Beach Tower
Esperanté Corporate Center is one of only three Class AA office towers in West Palm Beach and is the market’s newest office building following a renovation that was completed in the first quarter of 2018.
WEST PALM BEACH, FL—The ownership of the Esperanté Corporate Center here has secured $115 million in financing for the 255,984-square-foot office tower.
The financing was brokered by HFF on behalf of the ownership of the 20-story building, a joint venture between Brooklyn-based RedSky Capital and JZ Capital Partners of the United Kingdom. The HFF debt placement team representing the borrower included senior managing directors Chris Drew and Hermen Rodriguez and director Maxx Carney.
Esperanté Corporate Center is one of only three Class AA office towers in West Palm Beach and is the market’s newest office building following a renovation that was completed in the first quarter of 2018. On the property’s website it notes the recent completion of an $8-million renovation program at the property.
RedSky Capital and JZ Capital Partners secured a fixed-rate senior loan through Apollo Global Management on behalf of a managed account, and a fixed-rate mezzanine loan through a life insurance company. RedSky and JZ Capital acquired the building in 2016 from Cornerstone Real Estate Advisers and Crocker Partners for $125.75 million, according to the Real Deal.
HFF’s Drew notes, “The first-class renovation and RedSky’s institutional oversight has solidified Esperanté Corporate Center as one of the top office assets in South Florida. Additionally, hedge funds and private equity firms continue to flock to Palm Beach, which adds to the already numerous investment merits for the West Palm Beach submarket.”
The 20-story building boasts a tenant roster of banking, financial and legal services firms including Bank of America, Holland & Knight, and Chatham Lodging Trust.
Located at 222 Lakeview Ave. in the heart of Downtown West Palm Beach, the office tower is four miles from Palm Beach International Airport and a short walk to a host of dining, entertainment, and retail options located along Clematis Street and within CityPlace. In addition, Esperanté Corporate Center is located less than one mile from Brightline’s West Palm Beach station connecting the three major commerce hubs of South Florida via high end rail cars.
In late August, RedSky Capital and UK-listed investment fund JZ Capital took out a $221.8 million, three-year, interest-only bridge loan from JP Morgan to finance their Brooklyn retail portfolio.
The RedSky and JZ portfolio consists of 15 retail properties located on N. 6th Street and Bedford Avenue, two highly trafficked retail corridors in Williamsburg.