Atlantic Brand Real Estate Partnerthe sand Wheelock Street Capital closed an $85 million construction financing for 300 banyan treestheir Class A office development in West Palm Beach, Commercial Observer has learned.
Acore Capital provided the loan, while a Newmark team led by Dustin Stolly and Jordan Röschlaub arranged it.
The building sits at 300 Banyan Blvd. on the Clematis Waterfront – bordering downtown West Palm Beach – and represents the second phase of Brand Atlantic’s new development, Banyan & Olive. It follows the intestinal renovation of 111 Olive treea historic office and retail building in 111 North Olive Ave nearby.
“We are thrilled to have opened 300 Banyan. This is a project that embodies our company’s vision for the future of the office,” Andre Dance, managing partner of Brand Atlantic, said. “It will tick many boxes for tenants looking to attract and retain top talent: a beautiful building, water views, incredible amenities and a ‘Main & Main’ location in the Clematis Waterfront with all the great restaurants and shops.
Getting a construction loan for an office asset under construction these days is like catching a moonbeam in your hand, but for Acore Capital 300, Banyan ticked a lot of boxes, too.
“There is obviously a great deal of uncertainty and volatility in the market, and more particularly with regard to this type of asset. As a result, we are even more cautious and selective than usual, which makes the conclusion of ‘a somewhat counter-intuitive office contract today’, Tony Fineman, senior managing director and co-responsible for national origins for Acore, told CO. “Having said that, it was the right property on the right market with the right sponsor, and a very good fit for us.”
Plus, “we love West Palm Beach,” Fineman said. “The market has seen significant in-migration during the pandemic, and we believe it still has plenty of room to grow. In some respects, as difficult as the market as a whole is today, we did not have significant difficulties with this deal. The property is in a great location and the sponsorship is phenomenal. We are very excited about this deal.
When complete, the 12-story asset will include a seventh-floor loggia with a 2,500 square foot indoor and outdoor fitness center; a 1,500 square foot open-air lounge with reflecting pools and greenery; and a water-view deck, bar, and landscaping.
The office floors are configured to feature floor-to-ceiling glass, with panoramic water views and include more than 15,000 square feet of private shaded terraces – an important design factor for the dance.
“My philosophy is that in Florida, Texas and the Sun Belt cities, everyone wants to be outside, even when it’s really hot, but they want to be in the shade. So it was a design that evolved around that concept,” Dance said.
With the 111 Olive building already well underway and West Palm Beach being dubbed “the South Wall Street“As a destination for financial and technology companies migrating to the region, it was time for phase two to kick off with financial partner Wheelock and funding from Acore.
“They were great partners and were thrilled to close the deal,” Dance said of Team Acore. “Quite frankly, they had every opportunity to [change their minds] but we all really believed in the project and pushed it together to the finish line.
Dance said the construction loan “underscores that there is still capital in the market – even for specific offices – when it comes to the best projects and the best locations”. “Despite all the national headlines and the broader stories about recession and inflation, this reinforces our belief in the West Palm Beach office market. We are building a great project that will be very attractive to tenants.
At street level, 300 Banyan will also feature a chef-led restaurant and bar with a 4,200 square foot outdoor terrace and lounge.
Stolly described West Palm Beach as one of the “fastest growing markets in the nation,” adding that “the sponsorship team has the perfect design to capture trends in the living, working and playing demand of the area and an aesthetic that will elevate the neighborhood to new heights. .”
“Lenders follow tenants, who flock to this type of product,” Roeschlaub said. “There will be winners and losers in the battle for desktop users, and this sponsorship has a recipe for winning.”
Besides Stolly and Roeschlaub, Nick Scribani, Daniel Fromm, Chris Kramer, Daniel Matz, Daniel Morin and Holden Witkoff also arranged the financing.
Mayor of the City of West Palm Beach Keith James described the grand opening of 300 Banyan as “another big step forward for our downtown,” in a statement, while Kelly SmallridgeChairman and CEO of the Business Development Board of Palm Beach County, noted that “the continued expansion of prime office space in downtown West Palm Beach provides immense economic growth and opportunity.”
The building at 111 Olive will be delivered by the end of this year, while 300 Banyan has an estimated completion date of early 2024.
Cathy Cunningham can be reached at [email protected]m