Breaking: Steve Ross withdraws from Related and starts a company specializing in West Palm investments
Following four years of hefty investments and development in Palm Beach County, mostly in West Palm Beach, Ross stepped back from New York-based Related Companies and carved out the firm’s Related Southeast division into a separate firm that he will lead. Related Southeast is now rebranded as Related Ross, with Ross as chairman and CEO, according to sources.
Ross, 84, plans to also focus more of his time on the Miami Dolphins and Formula One race, the Wall Street Journal reported. Both hold their sporting events at Ross’ Hard Rock Stadium in Miami Gardens. The Wall Street Journal first reported Ross’ transition. The Real Deal independently confirmed the news.
The move marks Ross’ total commitment to his Palm Beach County investments and developments. In taking over Related Southeast’s projects, Related Ross essentially will oversee 2.8 million square feet of commercial properties, including completed and under construction buildings, as well as residential projects.
The move marks Ross’ total commitment to his Palm Beach County investments and developments. In taking over Related Southeast’s projects, Related Ross essentially will oversee 2.8 million square feet of commercial properties, including completed and under construction buildings, as well as residential projects.
The transition is in line with a succession plan at Related Companies that Ross put into motion more than a decade ago. In 2012, Ross stepped down as CEO of the firm, which he founded 52 years ago, and remained as chairman. Jeff Blau, who assumed the role of CEO in 2012, will lead Related Companies with President Bruce Beal Jr. and COO Kenneth Wong.
Ross isn’t bidding adieu to Related Companies entirely. He transitioned from chairman to nonexecutive chairman and remains the single largest shareholder, according to sources.
With over 125 employees, Related Ross will focus on real estate and infrastructure expansion to accommodate West Palm’s growth. Related Companies first became active in the city more than two decades ago, developing CityPlace, a mixed-use complex in downtown West Palm in 2000. Over the past four years, Ross supercharged Related Southeast’s bet on the area, becoming the biggest office property owner in downtown West Palm. The investment was partly a response to the influx of businesses and residents to South Florida following the onset of the pandemic.
In 2021, Related Southeast bought two office towers and half the ownership stake in a third, and also completed the 20-story 360 Rosemary office building. That tower is now fully leased, and the garage’s top level was converted into offices.
This year, construction of the 25-story One Flagler is expected to be completed. The tower is 75 percent preleased, with rents reaching $120 per square foot to $140 a square foot, triple net. In the fall, Related Ross is expected to start construction of 10 CityPlace and 15 CityPlace.
