The Real Deal Miami

CityPlace nears default, Related works on nearby hotel

May 06, 2010 09:47AM

CityPlace, the retail hub of West Palm Beach, is in danger of imminent default on
a $150 million loan, according to Fitch Ratings Service. The default
complicates matters for Related Companies, which has an ownership stake in the site. Related is now in the process of developing a
convention hotel across the street from CityPlace, having been
tapped in March by the Palm Beach County Commission. CityPlace says the
loan is not problematic, and that no payments have been missed, but one New York firm believes that it will have difficulty meeting
its yearly $9.6 million debt payments. According to Ross, Related could
spend $26 million of its own funds on the project and finance $39
million. [Palm Beach Post]