The Real Deal Miami

RedSky and JZ score $115M refi for Esperanté Corporate Center in WPB

The investors bought the building in 2016 for $125.75M
October 02, 2018 12:30PM

Esperanté Corporate Center

The owners of Esperanté Corporate Center in downtown West Palm Beach just scored $115 million in refinancing.

RedSky Capital and JZ Capital Partners secured a senior loan for their 255,984-square-foot property from Apollo Global Management and a mezzanine loan through a life insurance company, according to a press release.

Esperanté Corporate Center, at 222 Lakeview Avenue, is one of a handful of Class A office towers in West Palm Beach. The 20-story property’s tenants includes Bank of America, Holland & Knight, and Chatham Lodging Trust.

HFF’s debt placement team, including Chris Drew, Hermen Rodriguez and Maxx Carney, represented the borrowers.

Recently, Esperanté Corporate Center’s owners sued the city for allowing construction of another office building that would block Esperanté tenants’ view of the city’s waterfront. The move came after city commissioners up-zoned a downtown corridor along Okeechobee Boulevard by designating it as the Okeechobee Business District.

Brooklyn-based RedSky Capital and London-based JZ Capital Partners bought the building in 2016 from Cornerstone Real Estate Advisers and Crocker Partners for $125.75 million. Cornerstone Real Estate Advisers and Crocker Partners paid $71 million for the property in 2013, which at the time was 60 percent occupied. When RedSky and JZ bought the property in 2016, it was 98 percent leased.

Combined, RedSky and JZ have a portfolio of real estate assets in Brooklyn and South Florida worth more than $1.5 billion.

The city of West Palm Beach has limited Class A office space. West Palm Beach’s downtown area had a Class A vacancy rate of 15.9 percent and a year-to-date net absorption of negative 90,121 square feet, according to JLL.