Seven months after unveiling plans to develop a new office building and renovate an existing one in downtown West Palm Beach, a joint venture secured an $87 million construction loan for both projects.
New York-based Acore Capital provided the financing to Brand Atlantic Real Estate Partners and Wheelock Street Capital, according to records. The funds will go toward the development of a 12-story office tower at 300 Banyan Boulevard and a gut renovation of a historic building at 111 Olive Avenue, a press release states.
A Newmark team led by Dustin Stolly and Jordan Roeschlaub arranged the loan for Brand Atlantic and Wheelock, the release states.
Palm Beach-based Brand Atlantic is led by managing partners Andrew Dance and Adam Demark. Wheelock, a Greenwich, Connecticut-based real estate investment firm, is led by managing partners Rick Kleeman and Jonathan Paul. The partnership acquired the two sites for $20 million in June of last year, records show.
The joint venture is developing the projects, known as 300 Banyan and 111 Olive, at a time when the office market in downtown West Palm Beach is booming with new office construction, and an influx of out-of-state hedge funds and financial services firms are moving into the city.
Brand Atlantic and Wheelock plan to complete 111 Olive by the end of this year and 300 Bayan in early 2024, the release states. 111 Olive will have 27,000 square feet of offices and 11,000 square feet of retail. 300 Banyan will have 115,000 square feet of offices, 6,000 square feet of ground-floor food and beverage space and about 300 parking spaces.
With fierce competition from other new office projects like One Flagler, the joint venture is banking on 300 Banyan attracting tenants with its floor-to-ceiling windows with water views, private office terraces and an indoor golf simulator lounge, among other features.
Stephen Ross’ Related Companies is developing One Flagler, a 25-story office tower that is commanding asking rents of between $140 and $180 a square foot, according to JLL.
Last month, Related announced six firms signed leases for more than 50,000 square feet at One Flagler. The new tenants include Chicago-based Private equity firm GTCR, which is expanding its South Florida presence, and New York-based Diameter Capital, which is moving its downtown West Palm office from 360 Rosemary, another downtown West Palm Beach office tower Related also developed.