Steve Ross’ Related drops $195M for condo dev site in West Palm

Stephen Ross’ Related Companies dropped $194.6 million for a condominium development site in West Palm Beach, marking continued growth of his real estate empire in the city. 

Frisbie Group and Hines sold the 3.4-acre property at 1355 South Flagler Drive, where they had planned to build the two-tower, 28-story South Flagler House project with 82 condos and seven townhouses, according to records and real estate database Vizzda. New York-based Related assumed an existing $159.6 million loan from the sellers. 

In a statement, Related said it will develop the South Flagler House, with plans to start construction next year, according to a press release. Condo prices will start at $7.5 million. 

The deal comes less than a month after Frisbie settled a lawsuit with a rival developer, Two Roads Development, that had claimed Frisbie cut it out of a deal to buy and build out the land. 

Palm Beach-based Frisbie and Houston-based Hines bought the site for $41.5 million last year from Palm Beach Atlantic University. The pair had already launched South Flagler House condo sales at the time of the purchase. As of last month, they also had started demolishing a closed dormitory on the site. 

But in 2021, even before they closed on the site, Two Roads Development sued Frisbie and PBAU, alleging they secretly pushed it out of buying and developing the land. In court filings, Two Roads claimed Frisbie and PBAU also planned to “steal” its project plan. 

For their part, the university and Frisbie called Two Roads a “failed bidder” in court filings. 

The dispute settled confidentially last month. 

South Flagler House is designed by Robert A.M. Stern Architects, marking its first high-end residential project in Florida. 

Ross’ purchase of the site with plans to develop the luxury condo project signal he is expanding beyond the office market in West Palm. 

His Related companies is the biggest office property owner in the area. In 2021, it bought two towers and half of the ownership stake in a third. That year, it also completed and fully leased the 360 Rosemary office building. 

Related is developing One Flagler, called the “hedge fund tower” among real estate circles in a nod to the financial firms it’s expected to attract. It is at the foot of the Royal Park Bridge. 

Next, the firm plans the 515 Fern office tower next to the downtown Brightline station, as well as the East Tower and West Tower at downtown’s The Square mixed-use complex.