Related Group, BH Land $200M to Build Ritz-Carlton Condo in West Palm Beach

Jorge Pérez’s Related Group and BH Group scored a $200 million construction loan for the latest luxury condo development in West Palm Beach, Fla. — a Ritz-Carlton-branded tower — Commercial Observer has learned. 

The financing from Madison Realty Capital covers the 27-story, 138-unit project at 1717 North Flagler Drive, north of the city’s downtown. Construction, which got underway last month, is expected to be completed in 2028. Over 70 percent of the condos have presold, according to the developers. 

“In just six months, we have driven over $150 million in sales for this project,” Nick Pérez, president of Related Group’s condominium division and Jorge’s son, said in a statement. “The pace has truly been remarkable, and it speaks volumes about buyers’ confidence in the thriving West Palm Beach market.”

The joint venture purchased the 2-acre site in 2021. Amenities, which will be managed by the Marriott-owned Ritz-Carton brand, will include a pool deck, a gym, a spa and coworking lounges. Arquitectonica designed the building, while the Rockwell Group drew up the interiors. 

“With a majority of units already sold, we are pleased to provide a competitive, low-leverage capital solution with terms comparable to a bank, reflecting the strength of the collateral and a borrower relationship built across multiple transactions,” Josh Zegen, co-founder and managing principal of Madison Realty Capital, said in a statement.

Since the pandemic, West Palm Beach has seen a rush of new luxury condo development as supply dried up on Palm Beach, the city’s neighboring uber-affluent island. High-profile financial institutions, such as Wells Fargo, Goldman Sachs and J.P. Morgan Chase, have also signed office leases, bringing a new wealthy condo clientele to the city.

Just north of the Ritz-Carlton Residences, the Pérezes’ former partner, Stephen Ross, is building a 28-story, 98-unit high-rise after securing $157 million in construction debt last month. 

Farther south, Ross is also constructing a two-building condo complex, designed by RAMSA, after obtaining a $600 million debt package last year. Moreover, the developer is buying an old, low-rise condo building near President Donald Trump’s Mar-a-Lago estate with plans to redevelop it into another luxury condo complex.

Other condo projects under construction include Savanna’s Olara and Terra’s Mr. C Hotel & Residences West Palm Beach. 

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