Related Companies bought the CityPlace Tower in downtown West Palm Beach for $175 million, marking the company’s second major office purchase there this year.
Related, led by Miami Dolphins owner Stephen Ross, bought the 18-story building at 525 Okeechobee Boulevard from CPT Equity, an affiliate of Greenwich, Connecticut-based W. R. Berkley, according to records.
New York-based Related and Boca Raton-based Crocker Partners developed the tower with 300,000 rentable square feet on 1.2 acres in 2008. KBS Real Estate Investment Trust II then bought it in 2011 for $126.5 million, records show.
KBS REIT II, based in Newport Beach, California, sold the building to W. R. Berkley’s affiliate in 2014 for $150 million.
Tenants include Cleveland Clinic, Comvest Partners and law firms Carlton Fields, Shutts & Bowen, and Greenspoon Marder.
The purchase is another sign that Related Companies is confident in the downtown West Palm Beach office market. Over the past year, the area has caught the attention of tech firms seeking to relocate or expand to South Florida.
In January, Related bought the two Phillips Point office towers for $282 million, and the company has two other office projects in the pipeline.
It plans the 25-story One Flagler near the foot of the Royal Park Bridge connecting West Palm Beach and Palm Beach, and it scored a $140 million construction loan from MSD Capital in 2020 to finish the 20-story 360 Rosemary, which topped off in September.