Developer Steve Ross landed a $200 million refinancing for a portion of the CityPlace mixed-use complex in downtown West Palm Beach.
The deal marks a continuation of financing in South Florida, despite elevated interest rates.
Ross’ recently launched Related Ross, which is heavily focused on downtown West Palm, scored the new loan from Ares Commercial Real Estate, according to records. The financing replaces a $132.9 million outstanding balance on an existing loan from a Luxembourg lender and bumps up the total by $67.1 million.
Ross founded New York-based Related Companies 52 years ago, with notable projects including Hudson Yards and Deutsche Bank Center on Columbus Circle. In July, the 84-year-old stepped back from Related Companies and carved out its Southeast U.S. division into Related Ross.
Ross is chairman and CEO of Related Ross and remains Related Companies’ single largest shareholder and nonexecutive chairman. He also owns the Miami Dolphins and Formula One race, which hold sporting events at Ross’ Hard Rock Stadium in Miami Hardens.
Over the past four years, Ross kicked his investment and development in downtown West Palm into high gear, as the area became a prime recipient of out-of-state company leasing. Related Ross has more than a dozen office and residential buildings, including purchased, planned, under construction and completed.
The investments mark a comeback to downtown West Palm for Ross, who also has a home in Palm Beach. In 2000, Ross, at the time as head of Related Companies, completed the CityPlace mixed-use complex, marking its first project in the neighborhood.
In 2007, Related Companies took out a $150 million loan on CityPlace. It refinanced that loan’s $100 million outstanding balance in 2018, bumping up the total to $135 million with a lender affiliated with AllianceBernstein, according to records. The latest $200 million refinancing matures in 2027, records show.
Retail tenants at CityPlace include BurgerFi, H&M, West Elm, lululemon and CityPickle, which operates 13 pickleball courts. Italian food hall Eataly is expected to open next year.
Related Ross also is redeveloping portions of CityPlace. A pair of roughly 500,000-square-foot office buildings are slated for the northeast corner of South Rosemary Avenue and Hibiscus Street. They would replace the AMC West Palm Beach 12 at 545 Hibiscus Street, and the closed Brio Italian Grille at 550 South Rosemary Avenue.
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Refinancings have flowed this year in South Florida. This month, billionaire Jeffrey Soffer scored a $550 million refinancing for his JW Marriott Miami Turnberry Resort & Spa at 19999 West Country Club Drive in Aventura. Soffer’s Fontainebleau Development also landed a $975 million commercial mortgage-backed securities loan and a roughly $225 million mezzanine debt for his Fontainebleau Miami Beach at 4441 Collins Avenue in Miami Beach and an adjacent new convention center.
Last month, Los Angeles-based Ares, which provided the new CityPlace loan, also provided a $110 million refinancing for Estate Companies’ recently completed 23-story, 367-unit Soleste NoMi Beach tower at 16395 Biscayne Boulevard in North Miami Beach.