Obtains construction loan for One Flagler

New York-based Related Companies secured a $243 million construction loan for one of its office projects in West Palm Beach, Florida. The lender was an affiliate of MSD Partners, which is owned by Michael Dell, president and CEO of Dell Technologies. The funding will go towards the construction of One Flagler, a 277,000 square foot office building near the Royal Park Bridge and overlooking Lake Worth Lagoon.

The mortgage issued by MSD Partners is expected to become one of South Florida’s largest commercial property construction loans in 2022. The only other financing deal that came close to this amount was the loan from $230 million from Terra for a mixed-use development near Miami International. Airport.

At the time of the transaction, One Flagler was 60% pre-leased. By the end of the year, the developers expect that number to reach around 75%. The current list of tenants includes First Republic Bank, Siris Capital, private equity fund GTCR and credit asset manager Diameter Capital Partners, as well as Greek seafood restaurant Estiatorio Milos, which anchors the commercial section of the building.

The 25-story property was designed by architect David Childs, who has also been involved in projects such as One World Trade Center and 7 Times Square. Scheduled to be completed by 2024, One Flagler sits just west of the First Church of Christ Scientist – a property that accompanied the 2.5-acre land that Related had acquired for $20.1 million the last year.

Since 2020, Related has become dominant in the West Palm Beach office market, both as a developer and owner. In terms of assets held, the company’s portfolio includes office properties Phillips Point, CityPlace Tower and Reflections, as well as a 50% stake in Esperanté Corporate Center. Meanwhile, Related recently added a 20-story property at 360 Rosemary to its name, in addition to announcing plans for another office building project at 515 Fern. In fact, the company’s entire portfolio in West Palm Beach has earned it the nickname “Wall Street of the South” due to its ability to attract out-of-state financial firms.

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