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

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

Miami /
Jan.January 22, 2021 02:30 PM
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.

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.





    Related Articles

    arrow_forward_ios
    Related's Stephen Ross, Swire Properties' Kieran Bowers and renderings of One Brickell City Centre (LinkedIn, Getty, Swire Properties and Related Companies)
    Swire, Related score approval to widen planned Brickell office tower
    Swire, Related score approval to widen planned Brickell office tower
    Babak Ebrahimzadeh with The Contemporay
    Babak Ebrahimzadeh proposes West Palm office project
    Babak Ebrahimzadeh proposes West Palm office project
     Related Companies' Stephen Ross and a rendering of 515 Fern (Getty, Red Leaf NY)
    Stephen Ross bets on West Palm office development — again
    Stephen Ross bets on West Palm office development — again
    Sabadell Financial Center at 1111 Brickell Avenue in Miami, 110 Tower at 110 Southeast Sixth Street in Fort Lauderdale and The Gateway at Wynwood at 2916 North Miami Avenue in Miami with J.C. De Ona of Centennial Bank’s Southeast Florida division, Dominic Montazemi of Cushman & Wakefield, Chris Lee of CBRE, Shelby Rosenberg of R&B Realty Group and Todd Rosenberg of Pebb Capital (Google Maps, LinkedIn, Pebb Capital, R&B Realty Group, Cushman & Wakefield, CBRE)
    South Florida office sales falter, despite strong leasing
    South Florida office sales falter, despite strong leasing
    From left: Isaac Toledano, Teddy Sagi, Jorge Pérez and Michael Masanoff with a rendering of Transit Village (Related, LinkedIn, Rendering via Arquitectonica)
    Pérez and Sagi’s Transit Village in WPB advances
    Pérez and Sagi’s Transit Village in WPB advances
    A rendering of the proposed office building and Michael Shvo (Kobi Karp, Shvo)
    Michael Shvo plans second Miami Beach office project
    Michael Shvo plans second Miami Beach office project
    From left: Belong co-founders Tyler Infelise, Ale Resnik, and Owen Savir (Belong, Getty Images, Google Maps)
    Lease roundup: Rentals manager Belong moves HQ to Brickell
    Lease roundup: Rentals manager Belong moves HQ to Brickell
    From left: CIM Group’s Shaul Kuba; Miami Worldcenter Associates' Nitin Motwani and Art Falcone; Miami Worldcenter (Miami Worldcenter Associates, CIM Group)
    Lease roundup: Miami Worldcenter, Banyan Street nab tenants
    Lease roundup: Miami Worldcenter, Banyan Street nab tenants
    arrow_forward_ios

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

    Loading...