Related Cos. to pay $282M for West Palm Beach office towers
When it closes in two weeks, it will be South Florida’s largest office sale in more than a year
The Related Companies is expected to close on the Phillips Point office towers in West Palm Beach for $282 million.
AEW Capital Management is selling the 448,914-square-foot office complex. The deal, which will mark the largest office sale in South Florida in more than a year, is set to close in a couple of weeks. Real Estate Alert and Bloomberg reported the deal.
A source confirmed details of the sale to The Real Deal.
Related will pay about $630 per square foot for the buildings at 777 South Flagler Drive and 201 Lakeview Avenue. Records show AEW paid $246 million for the two towers in 2015. They sit on more than 4 acres overlooking Palm Beach island.
JLL brokers Hermen Rodriguez, Ike Ojala and Matt McCormack were marketing the building for sale as of last month. The brokerage declined to comment on the deal.
Morgan Stanley, Gunster, and Akerman are among the tenants. Phillips Point is about 90 percent occupied.
The sale comes as more financial and tech firms announce they are opening offices in South Florida. Goldman Sachs, which has a small office at Phillips Point, is considering moving its asset management division to South Florida, and reportedly has looked at spaces in Palm Beach County.
New York-based Related Companies, led by Miami Dolphins owner Stephen Ross, has been active in West Palm Beach. In March, the company secured a $140 million loan from MSD Capital to finish building its 20-story 360 Rosemary office tower in downtown West Palm. Related redeveloped CityPlace into Rosemary Square, and plans to build another office tower across from Phillips Point called One Flagler.