Steve Ross, the billionaire developer shunning retirement to continue working in South Florida, is on a refinancing roll.
His company, Related Ross, scored a $150 million loan for its convention center hotel in downtown West Palm Beach. New York-based BDT & MSD Partners provided the loan, which refinanced an existing $105 million debt and bumped it up by $45 million, according to records.
The 12-story Hilton West Palm Beach with 400 keys is at 600 Okeechobee Boulevard, adjacent to the Palm Beach County Convention Center.
The loan comes on the heels of Related Ross landing a $200 million refinancing last month for a portion of its CityPlace mixed-use complex in downtown West Palm. Ares Commercial Real Estate was the lender.
Ross, 84, is working on what is likely to be his last legacy-defining endeavor focused on South Florida and mainly on West Palm, after a 50-plus-year career of helping redefine skylines in New York, Los Angeles and elsewhere. Ross, who started New York-based Related Companies in the 1970s, stepped back from the firm last summer to start West Palm-based Related Ross.
Read more
Development
South Florida
Steve Ross trades New York state of mind for West Palm Beach
Development
South Florida
“It’s a canvas”: Kenneth Himmel digs into Related Ross’ West Palm Beach bet
Residential
South Florida
Related Ross launches redesigned Shorecrest condo project in West Palm Beach
Related Ross took over Related Companies’ South Florida holdings and is working on a slew of new projects. Among properties developed by Related Companies and now under Related Ross’ portfolio are the Hilton West Palm, completed in 2016 on a 3.4-acre site owned by Palm Beach County, and the CityPlace complex, completed in 2000.
Related Ross has a ground lease with the county for the Hilton. The existing $105 million loan on the hotel that BDT & MSD refinanced was provided by Wells Fargo and Bank Hapoalim in 2018. That year, Wells Fargo renewed a $30 million financing provided in 2017 and bumped it by $10 million, and Bank Hapoalim renewed a $63 million loan also provided in 2017 and bumped it by $2 million, according to records.
The new BDT & MSD financing has a floating interest rate, records show.
Related Ross’ planned projects in West Palm also include a second convention center hotel near the Hilton. In April, the firm scored approval for the 20-story, 404-unit Hilton Signia at 900 South Rosemary Avenue.
Ross’ West Palm investment is a more holistic venture instead of only a real estate development endeavor. It includes fundraising for the planned Vanderbilt University campus, providing grants aimed at economic mobility for underserved communities and tapping his New York network to fill his new office buildings. Leasing by financial service firms at his buildings has supercharged Palm Beach County economic leaders’ pursuit of a “Wall Street South” image.