Starwood acquires stake in West Palm Beach development site
Firm joins Hyperion Group and Winter Properties in developing 459-unit rental complex
UPDATED, 5:42 p.m., Sept. 17, 2021: As part of an $18.3 million sale, Starwood Capital Group is joining two New York development firms in developing a large multifamily project in West Palm Beach, sources familiar with the transaction told The Real Deal.
An affiliate of Miami Beach-based Starwood bought the 1.3-acre vacant lot at 350 South Australian Avenue from 350 Development LLC, an entity with ties to Hyperion Group and Winter Properties. The new owner, 350 S Australian Owner LLC, is a partnership between Starwood, Hyperion and Winter Properties.
Last December, Winter Properties and Hyperion received approval for design changes and setback variances to build a 425-unit rental complex. The 17-story project was supposed to be the first South Florida development for the two firms. The development will now consist of a 22-story building with 459 units after the City of West Palm Beach approved changes to the plans last month.
350 Development acquired the site for $1.1 million in October 2019, records show. Shortly thereafter, Hyperion — led by CEO Rob Vecsler — and Winter Properties bought 350 Development for an undisclosed amount.
Starwood is currently building a new six-story headquarters at 2340 Collins Avenue designed by Gensler. The project totals 144,430 square feet, including 8,000 square feet of ground-floor retail and a 305-space parking garage. The real estate investment firm is financing the construction with a $76 million loan and will occupy more than 50 percent of the new building once it’s completed later this year.
In 2018, Starwood Capital relocated from Greenwich, Connecticut, to its current corporate office at 1601 Washington Avenue.
Correction: An earlier version of this story misstated the roles of Starwood Capital, Hyperion Group and Winter Properties in the West Palm Beach Development site sale, along with the size and scope of the project and the property’s original owner.