Related Ross, which already has a major footprint in Florida, just obtained its largest financing on record, with a $772 million package for its CityPlace office developments in West Palm Beach. Not only is this the highest amount recorded in the company's history — but this marks the largest construction loan ever seen in the Sunshine State.
Ares Real Estate funds led the efforts in providing the financing package, with Eastdil Secured serving as the financial advisor on the deal.
One of the sites is 25-story 10 CityPlace. The 470,000 square foot space aims to offer a hospitality office landscape, with a second-level amenity floor. AI firm ServiceNow will serve as the anchor tenant there, with long-term plans to generate $1.8 billion for the local economy and contribute to transforming West Palm Beach into an innovation hub.
The other is 15 CityPlace, a 490,000 square foot tower that will be anchored by hospital care provider Cleveland Clinic. Some other tenants on the roster include Shutts & Bowen, Inclenberg Investments and BDO. Additionally, Related intends to expand its headquarters at 15 CityPlace to support regional growth and development in the area.
The two office buildings add to Downtown West Palm Beach's appeal, which is known for its public space and landscaping offerings, according to Related Ross. The goal is to combine a lifestyle environment with business.
“These two towers define the next chapter of CityPlace, expanding a vibrant, walkable mixed- use district that is shaping the future of downtown West Palm Beach,” Jordan Rathlev, executive vice president of Related Ross, said in a statement.
“This record-setting financing underscores the conviction our partners, Ares, Monarch Alternative Capital, and HPS Investment Partners, have in the strength of 10 CityPlace and 15 CityPlace and in the city’s momentum as a leading business hub.”
Both towers are expected to finish by 2027. It's unclear if the construction has already started or when it will occur.
In South Florida, Related Ross has a real estate portfolio that's valued at more than $1 billion, according to the company. In addition to office, Related operates hotels, retail and luxury rental units. Moreover, the firm plans to invest over $10 billion more in Palm Beach County alone.
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