Stephen Ross’ Related Companies bought half of the ownership interest in Esperanté Corporate Center in downtown West Palm Beach.
New York-based Related Companies now is an equal owner of the office tower with London-based JZ Capital Partners, said Gopal Rajegowda, partner at Related Southeast. The move solidifies Related as the biggest office owner in downtown West Palm Beach.
The purchase was of an interest in the limited liability company that owns the tower, meaning no deed was recorded, records show. Related bought out the interest of New York-based RedSky Capital. Rajegowda declined to disclose a purchase price.
The 20-story tower last traded in 2016 for $125.75 million. It was built in 1989 on 2 acres, records show.
Related, led by Miami Dolphins owner Ross, is both buying and building offices in downtown West Palm Beach.
The group is opening its 20-story, fully leased 360 Rosemary in mid-June, and it plans to start building the 25-story One Flagler at the foot of the Royal Park Bridge that connects West Palm Beach and Palm Beach.
Related’s bet on the area is based in large part on the influx of financial and technology firms to South Florida. Tenants opening at 360 Rosemary include investment firms Comvest Partners and Norwest Equity Partners, according to a news release.
The group aims to leverage its connections with out-of-state tenants looking to relocate or expand to South Florida.
“There are multiple companies that are thinking about migrating or setting up satellite office space in West Palm Beach, and naturally they are going to contact us,” Rajegowda said.
Related also developed CityPlace in 2000, recently rebranding it as Rosemary Square as part of a facelift of the project.