Recently, a prime, Class-A office complex in West Palm Beach sold to an affiliate of New York-based Related, Cos. Related’s purchase is reportedly the largest real estate acquisition of this kind in South Florida in over a year. Here is more on the Rosemary Square Builder’s multi-million-dollar office property acquisition in West Palm Beach.
The Phillips Point Office Towers
Last year, the Phillips Point Office Towers in West Palm Beach went on the market. The Class-A, 448,914-square-foot office complex located at 777 S. Flagler Drive and 201 Lakeview Avenue sits on more than four acres overlooking Palm Beach Island.
The building’s prior owner, AEW Capital Management, paid approximately $245 million for the property. According to a recent report, property records show that an AEW Capital Management affiliate sold the Phillips Point Office Towers to Related’s 777 South Flagler Associates for $281.9 million, which equates to $628 per square foot. The Related affiliate that bought Phillips Point “is said to be personally owned in large part by Stephen Ross, Related’s chairman.” Ross also owns the Miami Dolphins. Phillips Point is reported to be about 90 percent occupied.
The recent acquisition of Phillips Point may be pivotal as major financial firms establish operations in and around West Palm Beach. According to recent reports, this property is already home to some of the industry’s top firms, and its office space is expected to remain in high demand. According to reports, the purchase may also solidify the Related’s affiliate’s control of the West Palm Beach office market at a crucial time. In the wake of the coronavirus pandemic, several financial services firms are considering South Florida as an alternative to crowded urban environments. Additionally, higher state taxes have led many companies to contemplate moving their headquarters and operations into the state. For instance, one Philips Point tenant, Goldman Sachs, is reportedly considering moving its asset management division to South Florida and has viewed Palm Beach County spaces.
Related Cos. in West Palm Beach
Related Cos. has been a significant presence in West Palm Beach for the past 20 years. The company transformed CityPlace into the popular mixed-use shopping, dining, and residential complex, Rosemary Square.
In 2020, the company started preparations to complete its twenty-story 360 Rosemary office tower in downtown West Palm Beach. The 300,000-square-foot office tower is being built next to Rosemary Square. Additionally, the company will begin construction on 575 Rosemary, a luxury apartment complex, in March of this year. The new residential property is being built at the site for the former Macy’s space at Rosemary Square.
Related also has plans to develop One Flagler, an office tower, across from Phillips Point. Construction on the 25-story, 270,000-square-foot building at Flagler Drive and Okeechobee Boulevard is scheduled to begin later this year.
Related also built and sold CityPlace Tower, an 18-story, 300,000-square-foot office tower.
Contact the Board-Certified Florida Real Estate Attorneys of Rabideau Klein
At Rabideau Klein, David E. Klein, Esq. and Guy Rabideau, Esq. are dedicated, Florida Bar Board-Certified Real Estate Attorneys with the Palm Beach County expertise and experience you need to ensure that your interests are protected throughout your real estate matter in the Town of Palm Beach and throughout Palm Beach County. Contact Rabideau Klein today to discuss your Palm Beach area real estate legal needs.