A joint venture among Starwood Capital Group, Hyperion Group and Winter Properties is charging ahead with a downtown West Palm Beach mixed-use project after securing a $96.4 million construction loan, The Real Deal has learned.
J.P. Morgan Chase provided the financing, according to a press release. Slated to rise on a 1.3-acre vacant lot at 201 Clearwater Drive, the proposed 22-story building will entail 457 apartments, 7,000 square feet of ground-floor retail, a 628-space parking garage, and more than 34,000 square feet of indoor and outdoor amenities.
Construction on the unnamed project is set to begin soon, with a target of leasing to renters in early 2024, the release states.
In October 2019, an entity named 350 Development LLC paid $1.1 million for the land. Shortly thereafter, Hyperion – based in Miami and New York — and New York-based Winter Properties bought the entity for an undisclosed amount. Hyperion is led by CEO Rob Vecsler, and Winter Properties is led by President Rick Singer and co-CEOs David Winter and David Millstone.
In September, an affiliate of Hyperion, Winter Properties and Starwood, the Miami Beach-based global real estate investment firm led by CEO Barry Sternlicht, bought the property for $18.3 million from 350 Development.
The city of West Palm Beach approved plans for the mixed-use project in August.
Due to an influx of out-of-state firms and population growth, West Palm Beach is a hotbed of development and real estate activity. Starwood, Hyperion and Winter Properties’ project is near Clear Lake on the western edge of downtown, where builders and investors are vying for development sites.
In November, Globe Invest, the Related Group and BH Group formed a joint venture to invest in Transit Village, a $500 million mixed-use project fronting Clear Lake being developed by Michael Masanoff.
In February, the Related Companies, led by Miami Dolphins billionaire owner Stephen Ross, joined Wexford Real Estate Investors and Key International to buy Reflections, a collection of mid-rise office buildings facing Clear Lake, for $35 million.