Ross Secures $772 Million West Palm Office Construction Loan

Billionaire Steve Ross, who is dedicated to transforming West Palm Beach into a major hub for finance and technology, has secured a record-setting $772 million construction loan for two new office towers.

This financing deal is the largest known construction loan in South Florida’s history, and likely the biggest ever in the state. It comes at a time when the long-term prospects of the region’s office market are under scrutiny.

Through his company, Related Ross, Ross is developing two towers—23-story 10 CityPlace and 26-story 15 CityPlace—on part of the CityPlace mixed-use retail complex in downtown West Palm Beach. According to a Related Ross press release, Ares Real Estate funds, affiliated with Los Angeles-based Ares Management, led the group of lenders providing this record financing.

Monarch Alternative Capital and HPS Investment Partners have also joined the financing group for these projects, as noted by Related Ross’ Jordan Rathlev in the announcement.

10 and 15 CityPlace stand as symbols of Ross’ deep commitment to West Palm, where he has established himself as a dominant figure in the office market with roughly a dozen properties—spanning acquisitions, completed developments, active projects, and future plans.

While the rush of new companies moving into South Florida has slowed compared to the surge seen during the pandemic, and some question the pre-leasing viability for many upcoming office projects, Ross has largely insulated his West Palm portfolio by leveraging his extensive New York network to attract tenants.

Last year, Ross, now 85, stepped back from the New York-based Related Companies—which he founded over five decades ago—to launch Related Ross, based in West Palm Beach. The firm’s core focus is on West Palm, but its investments also extend to apartments, condominiums, and select projects throughout Palm Beach County and South Florida.

Ross currently serves as nonexecutive chairman of Related Companies and remains its largest shareholder.

The 10 CityPlace tower will offer 470,000 square feet and was designed by Kohn Pedersen Fox, while the 490,000-square-foot 15 CityPlace was created by Arquitectonica with interiors by Fogerty Finger. Construction began in March, and completion of both towers is anticipated in 2027.

Both buildings are rising on the northeast corner of South Rosemary Avenue and Hibiscus Street, replacing a former AMC theater and restaurant site. The CityPlace complex itself was Ross’ inaugural West Palm project, completed in 2000 through Related Companies.

Cloud computing company ServiceNow, known for helping businesses automate tasks with AI, will serve as the anchor tenant at 10 CityPlace. ServiceNow plans to establish an innovation hub and AI institute in West Palm, supporting Ross’ vision of positioning the city as a center for technology.

Cleveland Clinic will anchor 15 CityPlace with a 120,000-square-foot outpatient center, providing chemotherapy, imaging, outpatient surgery, and a concierge medicine program. This facility will be linked to Cleveland Clinic’s planned 150-bed hospital campus nearby, which will include an emergency department, ambulatory surgery center, and a medical office building.

Other tenants pre-leasing space at 15 CityPlace include assurance, tax and advisory firm BDO, law firm Shutts & Bowen, and private investment company Inclenberg Investments.

Ross’ additional office developments in West Palm include the recently completed 25-story One Flagler, situated at the foot of the Royal Park bridge, as well as the 25-story 515 Fern, which is being developed at the northwest corner of Fern Street and the Florida East Coast Railway tracks.

Elsewhere in South Florida, other significant loans include Whitman Family Development’s $740 million refinancing and expansion financing for Bal Harbour Shops last year, covering both a $550 million debt and a planned 250,000-square-foot retail expansion.

Last month, Dezer Development secured a $630 million construction loan for the 61-story, 216-unit Bentley Residences condo tower at 18401 Collins Avenue in Sunny Isles Beach. Also in November, Yamal Yidios’ Ytech received $565 million in financing for the 70-story, 195-unit The Residences at 1428 Brickell condo tower in Miami.