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25-story One Flagler has been dubbed the “hedge fund tower” for the financial tenants it is expected to attract
Stephen Ross nabbed a $242.5 million construction loan for One Flagler, marking a major boost to the developer’s plans for office towers in downtown West Palm Beach.
Ross’ New York-based Related Companies scored the financing from an affiliate of MSD Partners for the 25-story tower under construction at the foot of Royal Park Bridge overlooking Lake Worth Lagoon, according to records. The site addresses are 134 and 142 Lakeview Avenue, as well as 809 South Flagler Drive.
The 277,000-square-foot One Flagler is rising just west of the First Church of Christ Scientist, which will be preserved. Last year, Related bought the entire 2.5-acre property, including the church, for $20.1 million.
The project is among Related’s conquests in downtown West Palm Beach, where it has become the biggest office property owner by both acquisitions and new construction over the past two years.
Its latest planned project is the 25-story 515 Fern office building, set to be built next to the Brightline passenger train station.
In downtown West Palm, Related owns the two-tower Phillips Point; CityPlace Tower, which Related originally developed in 2008 with CP Group; and the Reflections office properties. It also bought half of the ownership interest in Esperanté Corporate Center for an undisclosed amount.
Related’s 360 Rosemary building kicked off its office development frenzy. The company was in the midst of building it when the pandemic struck and completed it last year. The 20-story tower is fully leased.
Related is likely drawing on its connections in New York to help fill its West Palm buildings. The area has earned the moniker “Wall Street of the South” for becoming a magnet for out-of-state financial firms.
Larry Fink’s BlackRock subleased 5,000 square feet at 360 Rosemary. Employees at the investment management firm have dubbed it the “snowbird office,” The Wall Street Journal reported.
One Flagler is dubbed the “hedge fund tower” in West Palm real estate circles, as it also is expected to attract financial service tenants. It is expected to be completed in early 2024.