MIAMI, Jun. 20, 2024 - JLL Capital Markets announced today that it has arranged $84.2 million senior construction financing for the first phase of the Nora District, an ongoing master-planned redevelopment project located in downtown West Palm Beach. The first phase of Nora will consist of the adaptive reuse and development of over 150,000 square feet of commercial space for restaurants, bars, retail shops, fitness studios and creative office space, which will complement and amenitize future development phases including a luxury boutique hotel alongside large-scale, multifamily and mixed-use developments.
JLL worked on behalf of the borrower, NDT Development, Place Projects, Wheelock Street Capital and BD Hotels, to secure the loan through Bank OZK. The partnership between the sponsors brings together a best-in-class master-redevelopment track record, localized market expertise and institutional investment management capabilities.
Commencing in 2019, NDT Development and Place Projects assembled over 70 individual parcels from a fragmented ownership into a consolidated 13-acre site and secured a large-scale rezoning allowing for as-of-right residential, hospitality, retail and office uses. The site's scale, centralized ownership and flexibility of zoning is a key driver of the district's compelling mixed-use vision.
Upon completion, the first phase of Nora will feature a curated commercial promenade, comprised of the adaptive reuse of nine existing industrial warehouses into high-finish, one- to three-story commercial buildings and four newly built boutique commercial buildings. Tenancy within the promenade will consist of a tasteful mix of best-in-class food and beverage with al fresco dining options, boutique fitness and wellness and lifestyle retail tenancy, featuring many new-to-market concepts including New York's Van Leeuwen Ice Cream, H&H Bagels, Garret Group bar concept, Juliana's Pizza, Boston's Loco Taqueria and Oyster Bar and Naples's Del Mar, among others. The property will also include a members' only club, featuring a high-finish lounge, a coworking area and an event and entertainment space. In addition to the redevelopment of commercial space, the project will also involve public realm improvements, streetscape beautification and infrastructure upgrades on North Railroad Ave. Upgrades will include cobblestone streets, curbless and widened sidewalks, landscaping, linear parks and additional parking areas to support the neighborhood and provide a truly walkable, pro-pedestrian experiential retail hub.
Future phases of the Nora District will feature over 1.7 million square feet of mixed-use development to further complement the commercial environment created in Phase I.
The JLL Capital Markets Debt Advisory team representing the borrower was led by Senior Managing Director Steven Klein, Managing Director Brian Gaswirth and Associate Mateo Bolivar.
"We are appreciative to our Borrower team for the opportunity to work on this forward-thinking development in one of the nation's most exciting markets. The commercial offering of Nora Phase I is posed to raise the bar for experiential retail in West Palm Beach and will become a transformative destination for both residents and visitors alike," said Klein.
Gaswirth added, "Our sponsor's ability to attract numerous new-to-market tenants is a testament to their deep industry knowledge, and the Nora District's potential to contribute to the ongoing rise of West Palm Beach into a premier lifestyle destination."
"Bank OZK is pleased to provide construction financing for Nora," stated Greg Newman, Senior Managing Director of Originations at Bank OZK. "This premier mixed-use development with its top-tier sponsorship and dominant location aligns well with our commercial real estate lending strategy."
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients - whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Jones Lang LaSalle Inc. published this content on 20 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 June 2024 18:40:40 UTC.
