This article first appeared on GuruFocus.
Ares Management (NYSE:ARES) has led a $772 million construction loan for Related Ross, the South Florida real estate development firm founded by billionaire Stephen Ross, to fund the completion of two major office towers in downtown West Palm Beach. According to a press release, the financing is described as the largest construction loan ever recorded in Florida, underscoring the scale of Ross’s latest bet on transforming West Palm Beach into a year-round finance and business center rather than a seasonal destination.
The loan supports 10 and 15 CityPlace, two upscale office towers rising 23 and 26 floors respectively, with construction having started in March and completion targeted for 2027. The development could encompass close to one million square feet of office space, and early leasing activity suggests growing tenant interest. Related Ross signed a lease in September for ServiceNow to occupy 200,000 square feet at 10 CityPlace, while 15 CityPlace has attracted tenants including the Cleveland Clinic, BDO, Shutts & Bowen, and Inclenberg Investments. Company executives have positioned the towers as a defining next phase of CityPlace, expanding a walkable mixed-use district aimed at reshaping downtown West Palm Beach.
From Ares’s perspective, the firm has expressed confidence that the project is well positioned to capture rising demand for high-end office space in the area, reflecting a constructive view on the local market’s trajectory. The transaction also deepens ties between Ares and Ross, who stepped away from day-to-day management at Related Cos. in 2024 to form Related Ross after relocating full time to Palm Beach during the pandemic. Beyond real estate, Ross is also the owner of the Miami Dolphins and last year sold a 10% stake in the team to Ares following the NFL’s decision to allow private equity ownership, a move that could further align the interests of the developer and the alternative asset manager.