Related Cos. closes on West Palm office towers for $282M

Two-building office complex previously sold in 2015 for $246M

Phillips Point office towers with Related’s Stephen Ross (JLL, Getty)
Phillips Point office towers with Related’s Stephen Ross (JLL, Getty)

The Related Companies closed on its $282 million purchase of the Phillips Point office towers in West Palm Beach, marking the largest office sale in South Florida in more than a year.

Property records show an AEW Capital Management affiliate sold the 448,914-square-foot office complex at 777 South Flagler Drive and 201 Lakeview Avenue to Realted’s 777 South Flagler Associates for $281.9 million. The purchase, which equates to $628 per square foot, was announced earlier this month.

The Related affiliate financed the acquisition with a $198.5 million loan from Goldman Sachs.

Records show AEW paid $246 million for the two towers in 2015. They sit on more than 4 acres overlooking Palm Beach island.

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JLL brokers Hermen Rodriguez, Ike Ojala and Matt McCormack represented AEW Capital in the latest deal.

Phillips Point is about 90 percent occupied, with Morgan Stanley, Gunster, and Akerman among the tenants.

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.

Last year, the company secured a $140 million loan from MSD Capital to finish building its 20-story 360 Rosemary office tower in downtown West Palm, where tenants will include Elliott Management, the hedge fund founded by Paul Singer. Related redeveloped CityPlace into Rosemary Square, and plans to build another office tower across from Phillips Point called One Flagler.