Billionaire Steve Ross scored a $340 million refinancing for the One Flagler office tower, completed this year in downtown West Palm Beach.
Related Ross, Ross’ real estate firm formed last year, obtained the loan from BDT & MSD Partners for the 25-story building at 180 Lakeview Avenue, according to records. The loan refinances the $242.5 million construction loan MSD Partners provided in 2022 and increases the debt by $97.5 million.
The refinancing has a floating interest rate, the mortgage record shows.
Related Ross completed the 285,000-square-foot One Flagler this year, marking the first project finished by the firm. The Skidmore, Owings & Merrill-designed tower is at the foot of the Royal Park Bridge and overlooks the Lake Worth Lagoon.
One Flagler was about 95 percent leased when it opened in February, with tenants including GoldenTree Asset Management, Ocean Sound Partners and Vista Investments of Florida. Greek restaurant Estiatorio Milos, led by Costas Spiliadis, opened in a roughly 10,000-square-foot space on the ground level and second floor.
BDT & MSD was formed in 2023 through the merger of merchant bank BDT & Company and MSD Partners.
Ross, 85, seized on downtown West Palm five years ago, first buying and developing office towers and then starting residential projects. Last year, he stepped back from New York-based Related Companies that he founded over 50 years ago to start West Palm-based Related Ross, focusing on South Florida and especially on downtown West Palm. Ross remains Related Companies’ nonexecutive chairman and its single largest shareholder.
Related Ross has about eight office buildings, including those purchased, completed, under construction and planned, in downtown West Palm. Also in the area, Related Ross completed the 322-unit Laurel apartment tower and is developing the two-tower South Flagler House condominium with 108 units. Another two condo projects are planned.
Ross also has become a benefactor in South Florida for various causes, and has stressed the need for more affordable housing in Palm Beach County.
Ross’ office development has remained unscathed from the slowdown in the influx of out-of-state businesses, as he has tapped his New York contacts to lease his West Palm buildings.
One Flagler was at one point nicknamed the “hedge fund tower” among real estate circles due to hefty leasing by financial firms.
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