Stephen Ross’ Related Companies, already the biggest Class A office owner in downtown West Palm Beach, is continuing its bet on the market.
Related, along with partners Key International and Wexford Real Estate Investors, through an affiliate, bought the Reflections office properties at 400 and 450 South Australian Avenue for $35 million, according to a deed. The seller is Reflect Co. LLC, tied to Boca Raton-based Southern Management and Development.
The eight-story Reflections complex, constructed in 1982, spans 5.2 acres, property records show. Each building is 60,000 square feet. A spokesperson for the buyers declined to disclose Reflections’ occupancy rate.
Reflect Co. paid $9.8 million for one of the buildings in 2007 and $9.8 million for the other in 2009, according to deeds.
Key International’s co-Presidents Inigo and Diego Ardid (Key International)
This is not the first partnership between Miami-based Key International, founded and led by the Ardid family, and West Palm Beach-based Wexford, led by co-founder and President Joseph Jacobs. The duo recently scored a temporary certificate of occupancy for the 10-story, 171-unit C Hotel by Marriott in Fort Lauderdale they developed steps from the beach.
New York City-based Related spent more than half a billion dollars in 2021 buying downtown West Palm’s high-end office towers, including the pair of Phillips Point buildings, CityPlace Tower and half of the ownership interest in Esperanté Corporate Center.
It also completed and fully leased 360 Rosemary and started construction on the One Flagler office building, dubbed among real estate circles as the “hedge fund tower” in a nod to the financial firm influx to downtown West Palm. Private equity firm Siris Capital will move into One Flagler from nearby Phillips Point, and First Republic Bank will open a retail branch and office space at the building.
Ross’ partnership on the Reflections purchase shows its bet on the area now is spilling into older buildings, as the office complex is considered Class B.
The seller, Southern Management, provides real estate management services, including leasing, property operating, and in-house development and construction, according to its website. Steven Levin is the company president, his LinkedIn account shows.