Stephen Ross Lands $772M to Build Two West Palm Offices

Stephen Ross’s Related Ross scored $772 million to build two office buildings in Downtown West Palm Beach, Fla., in one of South Florida’s largest construction loans in recent years.

Ares Real Estate is serving as the lead lender for the neighboring developments — 10 CityPlace and 15 CityPlace — alongside BlackRock’s private credit arm, HPS Investment Partners, and Monarch Alternative Capital.

Negotiations have been underway since the summer, as Commercial Observer was first to report. Eastdil Secured brokered the debt. The 26-story 15 CityPlace would span about 500,000 square feet, including about 20,000 square feet of retail space. Health care provider Cleveland Clinic has already pre-leased 125,000 square feet. 

The slightly smaller, 25-story 10 CityPlace will include 480,000 square feet, where AI company ServiceNow is expected to occupy up to 200,000 square feet. Both developments, located within the CityPlace mixed-use complex, broke ground in March. 

The financing tips Ross’s construction debt well past $1 billion in West Palm Beach, a city that the mogul is working hard to rebrand as a business hub through the real estate he is building.

360 Rosemary, an office building that Ross completed in 2021, has lured high-profile finance tenants, such as Goldman Sachs, J.P. Morgan Chase and Elliott Management. This year, Related Ross also opened the 25-story One Flagler office building that was designed by David Childs, the architect best known for having designed One World Trade Center in New York. 

Ross also successfully lobbied the prestigious Vanderbilt University to open a $520 million campus, though construction has yet to start. 

Beyond offices and education, the developer earlier this year nabbed another massive construction loan package: $600 million for waterfront luxury condo development, designed by RAMSA.

Julia Echikson can be reached at jechikson@commercialobserver.com.