The Related Cos. received a $142 million construction loan for its 360 Rosemary office project in downtown West Palm Beach.
MSD RCOF Partners, an affiliate of New York-based MSD Capital, awarded the mortgage to CityPlace North II LLC, an affiliate of New York-based the Related Cos., led by billionaire Miami Dolphins owner Stephen M. Ross. It covers the project at 360 Rosemary Ave., which is on the north side of Rosemary Square, the mixed-use project formerly known as CityPlace.
Moss & Associates is the general contractor.
The developers held a ground breaking ceremony in May 2019 for 360 Rosemary, which will total 300 square feet of offices in 20 stories. It should be completed in early 2021.
“The strategic financing with MSD Capital represents a continued show of confidence in our vision of 360 Rosemary from both business leaders and elite investors,” said Gopal Rajegowda, senior VP of Related Cos. “This state-of-the-art building in the heart of downtown West Palm combines flexible workspaces and unrivaled access to fashion, cuisine, and culture at Rosemary Square.”
Comvest Partners and Norwest Equity Partners are among the tenants to announce pre-leases at 360 Rosemary. West Palm Beach has attracted many private equity and wealth management firms in light of Florida’s favorable tax climate and its close proximity to the town of Palm Beach, one of the wealthiest ZIP codes in the country.
There hasn’t been a new office building in downtown West Palm Beach in over a decade, however, billionaire Jeff Greene also has an office tower under construction the city as part of his mixed-use project. Meanwhile, the Related Cos. is seeking approval for a 25-story office tower along the city’s waterfront.
The 360 Rosemary office will be close to the Brightline/Virgin Trains USA passenger rail station, which connects with Fort Lauderdale and Miami, with future stops in Orlando, Aventura and Boca Raton. That’s become a major selling points to potential tenants, as their workers could bypass heavy traffic. The office will also be surrounded by the restaurants and shops of Rosemary Square.
The Related Cos. recently completed a $40 million renovation to Rosemary Square in order to make it more walkable and add public art installations. A 21-story apartment building is also planned at Rosemary Square to replace the former Macy’s building.