Billionaire Stephen Ross, who founded high-profile New York real estate firm Related Cos. roughly half a century ago, has decided to move on and bet big on Florida.
Ross, 84, is exiting Related, perhaps best known for its development of mixed-use Hudson Yards on Manhattan's West Side, to launch his own real estate firm in the rapidly expanding market of West Palm Beach. Ross is solidifying his professional roots in his beloved Sunshine State, stepping down from Related, the prominent development company he founded in 1972 . The Wall Street Journal reported the news earlier Thursday.
To form Ross' new venture, Related's Southeast division will be spun off as an independent business from Related Cos. and rebranded as Related Ross. The new company has more than 120 employees.
"I will lead the day-to-day operations," Ross said in a memo to staff in West Palm Beach. "I am very excited about the team we have built and what we have ahead of us in South Florida."
Ross has already forged deep roots and ties in South Florida, where he moved full time during the COVID-19 pandemic, and he reportedly believes the area is poised to become the Silicon Valley of the East Coast.
He owns the Miami Dolphins, the NFL franchise, and has a stake in Formula One racing. He has amassed almost 3 million square feet of commercial space, including several luxury multifamily buildings, in Palm Beach County.
"Our work in West Palm Beach now includes 2.8 million square feet of commercial holdings built and under construction, a new class of luxury residential in the market with South Flagler House, Shorecrest and The Laurel, CityPlace, the most visited neighborhood in the city, hotels including the existing Hilton West Palm Beach and the future Signia; in Miami, our marquis sports properties include the Dolphins, Miami Grand Prix, Miami Open and Hard Rock Stadium," Ross said in his memo.
Related in New York and Related Ross in West Palm Beach didn't respond to emails from CoStar News seeking a comment. But Ross is slated to remain Related's single largest shareholder, and serve as its nonexecutive chairman, he said in his memo. But he will now focus on Related Ross as its chairman and CEO.
Variety of Developments
Today Related, the company that Ross built from the ground up, has grown to have over $60 billion in real estate assets owned or under development, including mixed-use, residential, retail and office properties in high barrier-to-entry markets. Related is also one of the largest owners and preservationists of affordable housing in the country, according to the company's website.
But one of Related's biggest — and certainly most prominent — achievements was the development of Hudson Yards, a 28-acre destination in what was once a sketchy, barren area in Manhattan. The project — billed as the largest U.S. private development — helped revitalize the area, drawing tourists and New Yorkers alike and attracting tenants to commercial buildings.
Related is currently a contender to open a casino in New York City. The firm has teamed up with Wynn Resorts to pursue a license at Western Yards, directly next to the Javits Convention Center.
Ross' departure was anticipated. A succession plan was put in place at Related more than a decade ago. In 2012, Ross vacated his post as CEO of the firm and was succeeded by Jeff Blau. Ross retained the title of chairman until now. Blau and Related President Bruce Beal Jr. and Chief Operating Officer Kenneth Wong will remain in the C-suite as Related's top management.
Ross has said he wants to spend more time on activities related to the Dolphins and Formula One.
Related began its work in South Florida more than 25 years ago with the development of CityPlace, considered the anchor of West Palm Beach’s distinct downtown and waterfront districts. Some 41% of people who moved from New York to South Florida came to Palm Beach County, and West Palm Beach has received much of that nationwide “in-migration.”
In addition, Related Ross owns all operating Class A office space in the West Palm Beach market and 85% of existing and under-construction office space in the market, including One Flagler. Two of Related Ross’ buildings in West Palm Beach, 10 CityPlace and 15 CityPlace, are slated to break ground this fall.
On the residential front, Related Ross opened The Laurel luxury apartments, which racked up the fastest lease-up in the history of the company after hitting 50% leased in less than 90 days. Related Ross also broke ground on South Flagler House this year, two waterfront, 28-story buildings with 108 residences.