Brand Atlantic Seals $87M Construction Loan for South Florida Spec Office Project
Brand Atlantic Real Estate Partners and Wheelock Street Capital have closed $87 million in construction financing for 300 Banyan, their boutique Class-A office development in West Palm Beach, Commercial Observer has learned.
Acore Capital provided the loan, while a Newmark team led by Dustin Stolly and Jordan Roeschlaub arranged it.
The building sits at 300 Banyan Boulevard on the Clematis Waterfront —on the edge of downtown West Palm Beach — and represents the second phase in Brand Atlantic’s new development, Banyan & Olive. It follows the gut renovation of 111 Olive, a historic office and retail building at 111 North Olive Avenue nearby.
“We are thrilled to break ground on 300 Banyan. It is a project that embodies our company’s vision for the future of office,” Andrew Dance, managing partner at Brand Atlantic, said. “It will check a lot of boxes for tenants looking to attract and retain the best talent: a beautiful building, water views, incredible amenities, and a ‘Main & Main’ location in the Clematis Waterfront with all the great restaurants and shops.”
Securing a construction loan for an office asset being built on spec these days is like catching a moonbeam in your hand, but for Acore Capital 300 Banyan also checked a lot of boxes.
“There is obviously a lot of uncertainty and volatility in the market, and specifically with regards to this asset type. As a result, we are being even more cautious and selective than usual, which makes doing an office deal a little counterintuitive today,” Tony Fineman, senior managing director and co-head of national originations for Acore, told CO. “That said, this was the right property in the right market with the right sponsor, and a really great fit for us.”
Additionally, “we love West Palm Beach,” Fineman said. “The market saw significant inbound migration during the pandemic, and we believe it still has a lot more room to grow. In some ways, as difficult as the broader market is today, we didn’t have significant challenges with this deal. The property is very well-located, and the sponsorship is phenomenal. We’re very excited about this deal.”
When completed, the 12-story asset will feature a seventh-floor loggia with a 2,500-square-foot indoor and outdoor fitness center; a 1,500-square-foot, open-air lounge with reflecting pools and greenery; and a terrace with water views, a bar and landscaping.
Office floors are set to feature floor-to-ceiling glass, with panoramic water views and include more than 15,000 square feet of shaded private terraces — an important design factor for Dance.
“My philosophy is that in Florida, Texas and the Sun Belt cities, everyone wants to be outside, even when it’s really hot —but they want to be in the shade. So this was a design that evolved around that concept,” Dance said.
With the 111 Olive building already firmly underway, and West Palm Beach being dubbed “the Wall Street of the South” as a destination for finance and tech firms migrating to the area, it was time for phase two to get off the ground with equity partner Wheelock and financing from Acore.
“They’ve been really great partners and they were excited to do the deal,” Dance said of the Acore team. “Quite frankly, they had every opportunity to [change their minds] but we all really believed in the project, and pushed it to the finish line together.”
Dance said the construction loan “underscores that there is still capital in the market — even for spec office— when it comes to the best projects and the best locations.” “Despite all the national headlines, and the broader stories about recession and inflation, it furthers our conviction in the office market in West Palm Beach. We’re building a great project that’s going to be very attractive to tenants.”
At its street level, 300 Banyan will also include a chef-driven restaurant and bar with a 4,200-square-foot outdoor dining terrace and lounge.
Stolly described West Palm Beach as one of the “strongest growth markets in the country,” adding that “the sponsorship team has the perfect design to capture the area’s live, work, play demand trends and an aesthetic that will lift the neighborhood to new heights.”
“Lenders are following tenants, who are flocking to this product type,” Roeschlaub said. “There will be winners and losers in the battle for office users, and this sponsorship has the recipe for emerging a winner.”
In addition to Stolly and Roeschlaub, Nick Scribani, Daniel Fromm, Chris Kramer, Daniel Matz, Daniel Morin and Holden Witkoff also arranged the financing.
City of West Palm Beach Mayor Keith James described the groundbreaking of 300 Banyan as “another big step forward for our downtown,” in a release, while Kelly Smallridge, president and CEO of the Business Development Board of Palm Beach County, noted that “the continued expansion of top-tier office space to Downtown West Palm Beach offers immense economic heightening and opportunity.”
The building at 111 Olive will be delivered by the end of this year, while 300 Banyan has an estimated completion date of early 2024.
Cathy Cunningham can be reached at firstname.lastname@example.org