Related Cos., the real estate firm led by billionaire Stephen Ross, has purchased a site slated for a luxury condo development in West Palm Beach, Florida.
(Bloomberg) — Related Cos., the real estate firm led by billionaire Stephen Ross, has purchased a site slated for a luxury condo development in West Palm Beach, Florida.
The New York-based firm bought the waterfront site from Hines and Frisbie Group, according to a statement Friday. The project, called South Flagler House, will include two 28-story towers connected at a base lined with stepped gardens. Related’s purchase price was $195 million, according to people familiar with the matter who asked not to be identified citing private information.
Ross’s company will lead the development of the towers and work with Robert A.M. Stern Architects, known for designing Manhattan’s 15 Central Park West and 220 Central Park South.
The project marks the latest expansion in South Florida by Related, which has been building in West Palm Beach for 25 years. The firm started in 1999 with CityPlace, transforming the property into offices, retail and rental housing in a development now called the Square.
Related’s buildings in the area have lured office tenants from Goldman Sachs Group Inc. to Steve Cohen’s Point72 Asset Management.
“We will bring the industry-leading luxury quality that we’re known for across the country to West Palm Beach,” Ross, chairman and founder of Related, said in the statement.
The sellers — Hines and Frisbie — purchased the site last year for nearly $42 million, mapping out plans for South Flagler House and bringing on the architect. But the project has faced challenges such as a lawsuit from after another developer who had wanted to build on the site. The lawsuit was settled this year.
Pricing at South Flagler House, featuring two- to five-bedroom residences, will start at $7.5 million. Amenities will include a pickleball court and lounge, 25-meter (82-foot) lap pool, hot tub and spas. Construction is expected to start next year.
Read More: The 15 Central Park West of West Palm Beach Hits the Market
Prices for luxury condos in West Palm beach have surged as inventory shrinks. Buyers paid a median of $2.05 million in the second quarter, up 116% from a year earlier, according to appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate.
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