Related Urban postpones Gateway Tower

Miami /
Apr.April 07, 2014 04:30 PM

Related Companies’ mixed-use development arm, Related Urban, shelved plans to build Gateway Tower at CityPlace in West Palm Beach due to a shortfall of interested tenants.

The tower was slated to be built in the median of Okeechobee Boulevard between Florida and Alabama avenues. Potential tenants, including Bank of America/Merrill Lynch and two law firms, reportedly backed out because they needed the space in less than 18 months.

Related would have needed at least two years to design and erect the roughly 200,000-square-foot building, the Palm Beach Post reported.

“If I’m building a 220,000-square-foot building, and I pre-lease 110,000 square feet, I’m taking a risk on leasing another 110,000,” president of Related Urban Ken Himmel told the Post. “We are willing to do that. But I’m not going to speculate more than 50 percent of the building.”

The company is still talking to interested businesses. But residents say demand for large commercial leases in the area are rare. Meanwhile, CityPlace Tower to the south has leased all but 15,000 square feet of the 300,000-square-foot building, despite high rents. [Palm Beach Post] — Angela Hunt


Related Articles

arrow_forward_ios
13th Floor's Arnaud Karsenti and Wexford's Joseph Jacobs and Philip Braunstein with rendering of The Residences of Palm Beach West (13th Floor Investments, Wexford Real Estate Investors, Arquitectonica)
13th Floor, Wexford propose 25-story tower in downtown West Palm
13th Floor, Wexford propose 25-story tower in downtown West Palm
Publix, West Palm Beach
Publix pays $57M for shopping center it anchors in West Palm Beach
Publix pays $57M for shopping center it anchors in West Palm Beach
Conlon & Co's Sean Conlon with 206 Clematis Street (Loopnet, Conlon)
Sean Conlon pays $18M for historic apartment and retail building in downtown West Palm
Sean Conlon pays $18M for historic apartment and retail building in downtown West Palm
LBCW Investments' Clay Hamlin III with 1100 25th Street and 1426 Skees Road (Loopnet, LBCW)
Industrial play: Alliance HP trades one West Palm complex for another
Industrial play: Alliance HP trades one West Palm complex for another
Pantzer's Jason and Jordan Pantzer with The District Flats apartment complex at 1701 Clare Avenue (Pantzer Properties, Google Maps)
Pantzer pays $78M for West Palm Beach apartment complex
Pantzer pays $78M for West Palm Beach apartment complex
From left: a rendering of the project at 201 Clearwater Drive in West Palm Beach, Starwood Capital CEO Barry Sternlicht, Hyperion Group CEO Rob Vecsler and Winter Properties co-CEO David Winter (Getty, Hyperion, Winter Properties)
Starwood, Hyperion and Winter Properties score $96M construction loan for West Palm mixed-use project
Starwood, Hyperion and Winter Properties score $96M construction loan for West Palm mixed-use project
BGI Companies' Kenneth Baboun, a rendering of Alba Palm Beach and Trez Capital's Ben Jacobson 
BGI scores $82M construction loan for luxury condo project in West Palm Beach
BGI scores $82M construction loan for luxury condo project in West Palm Beach
Jorge Pérez vs Stephen and Louise Kornfeld with a rendering of Icon Marina Village (Related Group, Getty, Wikipedia)
Related Group allegedly jilted investors in waterfront West Palm resi project: lawsuit
Related Group allegedly jilted investors in waterfront West Palm resi project: lawsuit
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...