Starwood Capital Group acquires West Palm development site
UPDATE, 5:42 p.m., September 17, 2021: In an $ 18.3 million sale, Starwood Capital Group is joining two New York development companies to develop a large multi-family project in West Palm Beach, sources familiar with the transaction said. The real deal.
A Miami Beach-based subsidiary of Starwood purchased the vacant 1.3-acre land at 350 South Australian Avenue from 350 Development LLC, an entity related to Hyperion Group and Winter Properties. The new owner, 350 S Australian Owner LLC, is a partnership between Starwood, Hyperion and Winter Properties.
Last December, Winter Properties and Hyperion received approval for design changes and margin variances to build a 425-unit rental complex. The 17-story project was supposed to be South Florida’s first development for the two companies. The development will now consist of a 22-story building with 459 units after the City of West Palm Beach approved changes to the plans last month.
350 Development acquired the site for $ 1.1 million in October 2019, according to records. Soon after, Hyperion – led by CEO Rob Vecsler – and Winter Properties purchased 350 Development for an undisclosed amount.
Starwood is currently building a new six-story corporate headquarters at 2340 Collins Avenue designed by Gensler. The project totals 144,430 square feet, including 8,000 square feet of retail space on the ground floor and a 305-space parking lot. The real estate investment company is financing the construction with a $ 76 million loan and will occupy more than 50 percent of the new building once it is completed later this year.
In 2018, Starwood Capital moved from Greenwich, Connecticut to its current headquarters at 1601 Washington Avenue.
Correction: An earlier version of this story distorted the roles of Starwood Capital, Hyperion Group, and Winter Properties in the sale of the West Palm Beach development site, as well as the size and scope of the project and the original owner of the property.