West Palm Beach Office Development Sets $772M Financing Record

The West Palm Beach office development at CityPlace has reached a historic milestone with a $772 million construction loan, the largest ever recorded in South Florida. As a result, the deal highlights growing investor confidence in West Palm Beach as a rising hub for finance, technology, and healthcare.

Stephen Ross, through Related Ross, has secured a $772 million construction loan for two premier office towers in West Palm Beach. Notably, this marks the largest construction financing ever completed in South Florida. As a result, the deal sends a strong signal about investor confidence in the city’s long-term growth.

More importantly, the financing reinforces West Palm Beach’s push to become a regional hub for finance, technology, and healthcare. Consequently, the project creates ripple effects across office, multifamily, and mixed-use real estate.

Project Overview

The loan funds 10 CityPlace and 15 CityPlace, two Class A office towers within the CityPlace mixed-use district. The site previously housed an AMC theater and restaurant.

• 10 CityPlace rises 23 stories and totals about 470,000 square feet.
  It was designed by Kohn Pedersen Fox.

• 15 CityPlace reaches 26 stories with roughly 490,000 square feet.
  The tower was designed by Arquitectonica, with interiors by Fogerty Finger.

Together, the buildings add nearly one million square feet of modern office space. In turn, they raise the bar for institutional-quality product in Palm Beach County.

Financing Structure and Timeline

The $772 million loan is led by Ares Real Estate Funds, part of Ares Management. Monarch Alternative Capital and HPS Investment Partners also participated.

Importantly, the financing surpasses the previous South Florida record. That benchmark was Whitman Family Development’s $740 million loan for Bal Harbour Shops.

Construction began in March 2025. As a result, delivery is expected in 2027. This provides investors with a clear development timeline in a tightening office market.

Tenant Momentum and Market Positioning

Pre-leasing activity has been especially strong. This early traction significantly reduces project risk.

• ServiceNow anchors 10 CityPlace.
  The firm plans an innovation hub and AI institute at the site.

• Cleveland Clinic anchors 15 CityPlace.
  Its 120,000-square-foot outpatient center will include surgery and concierge services.
  Additionally, the facility connects to plans for a future 150-bed hospital.

Meanwhile, other tenants include BDO, Shutts & Bowen, and Inclenberg Investments. Collectively, these commitments position the towers for stable occupancy from day one.

Why This Matters for Investors and Landlords

For investors, the implications extend beyond office space alone.

First, the influx of finance, tech, and healthcare workers should lift housing demand nearby. As a result, multifamily rents and values could rise.

Second, tightening office vacancies improve the outlook for mixed-use projects. Retail and residential components become more viable alongside office development.

Finally, the size of the loan itself acts as a market signal. Consequently, additional capital may follow, compressing cap rates across Palm Beach County.

Investors may want to focus on adjacent sites and value-add opportunities before pricing adjusts.

Bottom Line

Ultimately, Stephen Ross’s $772 million construction loan does more than fund two office towers. It validates West Palm Beach’s emergence as a serious finance and tech destination. For landlords and investors, the project marks a catalytic moment—one that could reshape demand and pricing across South Florida in the years ahead.

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