A Joint Venture between affiliates of Starwood Capital Group, Hyperion Group, and Winter Properties has secured construction financing from J.P. Morgan for the development of a 22-story residential building at 201 Clearwater Drive in downtown West Palm Beach, Florida. The project, which is being developed by Hyperion, will have 457 apartments, 7,000 square feet of ground floor retail, a 628-space parking garage, and over 34,000 square feet of indoor and outdoor amenities. With financing in place, construction is set to begin, and the project will lease to renters in early 2024.
“We are delighted to have the involvement and support of a best-in-class firm like J.P. Morgan as a lender on this development and are gratified that our vision for this area is being realized,” said Rob Vecsler, Founder and CEO of Hyperion. “In addition to a Class A, fully amenitized rental tower, our location on Clear Lake will offer renters panoramic downtown and water views, convenient access to multiple modes of transportation, and a short walk to downtown offices, amenities, shopping and nightlife.”
“Downtown West Palm Beach is in the midst of unprecedented expansion as more companies and residents move to Palm Beach County,” said Andrew Coren, Managing Director at Starwood Capital. “We are thrilled to invest with our partners in this flourishing market.”
“At Winter, we look for development partners with a deep understanding of local dynamics and a proven ability to deliver best-in-class properties,” said Rick H. Singer, President of Winter Properties. “We’re pleased to work with Hyperion and Starwood Capital on this venture, which will help meet the rapidly-growing demand for quality apartment housing in West Palm Beach.”
West Palm Beach is experiencing substantial growth in office and residential activity, driven by demographic changes including a 17.5% population increase in Palm Beach County since 2010, which is almost double the rate of the national average, according to the US Census. The county is home to 2,500 financial service firms according to the Business Development Board of Palm Beach County and its attractive business climate is drawing major national firms such as Goldman Sachs. Additional demand would be fueled by the University of Florida campus planned near the project.
About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,000 employees. Since its inception in 1991, Starwood Capital Group has raised over $70 billion of capital, and currently has approximately $115 billion of assets under management. Through a series of commingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust, the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $80 billion of capital since inception and manages a portfolio of nearly $25 billion across debt and equity investments. Over the past 30 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.
About Hyperion Group
Founded in 2002, Hyperion is a vertically integrated investor, developer and operator of residential and mixed-use real estate based in South Florida and New York with a demonstrated track record of identifying and delivering value through all market environments. Since relaunching the firm in 2020 after six years as President, Residential Development and Head of Acquisitions at Silverstein Properties in New York, Hyperion CEO Rob Vecsler formed a best-in-class team with executives he worked with at Silverstein and Hyperion, and the firm is actively developing multiple ground-up mixed-use projects with nearly 1500 residences across 2.5 million square feet, including mixed income and affordable housing, in the South Florida and New York markets. For more information, please visit https://www.hypdev.com/.
About Winter Properties
Winter Properties is a vertically integrated real estate investment, management and development company that focuses on strategic investments and ventures throughout major urban markets in the U.S., targeting attractive, risk-adjusted returns through both asset- and entity-level investments. For more than a century, Winter has built a reputation as a first-class owner, operator, developer and investor based in New York City. Winter brings the global scale, reach and know-how of its related companies—Standard Industries and Standard Investments—to its partners, who bring the geographic and sector expertise. Standard Industries is a privately-held global industrial company with a broad array of holdings, technologies and investments—including both public and private companies from early to late-stage—as well as world-class building materials assets and next-generation solar solutions. For more information, please visit https://www.winter.com/.