Steve Ross’ bold vision for South Florida real estate; Eli Puretz sentenced to 24 months in prison for mortgage scheme… and more

THE RUNDOWN:

?? Developer Steve Ross has turned his focus to transforming West Palm Beach, swapping New York’s skyline for a South Florida reinvention that he believes could rival Silicon Valley's economic influence.

?? A New Jersey federal judge sentenced 29-year-old Chaim “Eli” Puretz to 24 months in prison for his role in a multi-million-dollar mortgage fraud scheme.

?? Elon Musk is reshaping Texas real estate with a sprawling portfolio that includes nearly 3,900 acres across the state, valued at $3.4 billion for tax purposes.

?? Compass CEO Robert Reffkin has unveiled ambitious plans to dominate the real estate market, aiming for 30% market share in the company’s top 30 markets by 2030.

?? Aby Rosen's RFR Holding is facing intense lender pressure as bondholders on a $219 million loan for its Grand Central tower filed for foreclosure just six weeks after default.

?? Oak Row Equities is set to make South Florida real estate history with a $520 million purchase of a 4.25-acre bayfront assemblage in Miami’s Brickell Financial District.

THE DETAILS:

?? Steve Ross trades New York state of mind for West Palm Beach

The 84-year-old billionaire who spearheaded Hudson Yards in NYC is now leading Related Ross, a firm dedicated to developing over 3.8 million square feet of offices, retail and residential spaces in Palm Beach County.

• Despite challenges like affordable housing shortages and skepticism about future growth, Ross has ambitious plans, including a Vanderbilt University campus, a $600 million hospital and numerous mixed-use developments.
• His vision is bolstered by strategic investments and partnerships, including recruiting Wall Street firms to relocate to "Wall Street South," where hedge funds and private equity firms now outpace the area’s traditional industries.
• A Florida native, Ross is embracing the state’s pro-growth environment, using his legacy and influence to shape the city’s future, even as he balances owning the Miami Dolphins and Formula One Miami.

?? Judge sentences Eli Puretz to 24 months in prison

The massive mortgage scheme revolved around the 2020 purchase of the Troy Technology Park in Michigan, where Puretz, his father Aron Puretz and Boruch Drillman inflated the property’s price to secure an oversized loan.

• The trio falsely claimed the property was worth $70 million to secure a $45 million loan — far more than its actual $42.7 million purchase price.
• Judge Robert Kirsch noted Eli Puretz’s limited role in the fraud compared to his father, who received five years and was ordered to pay $22 million in restitution, and called the younger Puretz a “novice swimming in a shark’s pool.”
• Puretz expressed remorse during his sentencing, telling the court he no longer recognized himself and that he regrets the shame he brought to his family.

?? Elon Musk’s bite of Texas

The billionaire’s Texas expansion aligns with his escape from California’s regulations and progressive policies, creating spaces to grow his companies unencumbered.

• Near Austin, his Tesla Gigafactory anchors a 2,500-acre site alongside a new office for Neuralink and a $35 million family compound, and a Musk-designed utopia named Snailbrook sits just outside Austin in Bastrop.
• At the southern tip of Texas, Musk’s SpaceX operations in Boca Chica form the heart of Starbase, a would-be town with modest homes, a private bar, and plans for a $6 million restaurant.
• While some locals push back against Musk’s presence, his projects are transforming Texas into a key base for his empire and a playground for his vision of the future.

?? Compass, upstart-turned-behemoth, plans to get even bigger

Its mission, reminiscent of the brokerage’s earlier 20/20 market share goal that it fell short of years ago, includes making Compass a primary listings destination by leveraging acquisitions, growing its inventory and pushing back against NAR policies.

• In 2024, Compass expanded aggressively — acquiring regional heavyweights like @properties and Parks Real Estate, boosting its footprint in Chicago, Tennessee and the Gulf Coast.
• The firm is also banking on technology-driven tools, such as its "Make-Me-Move" feature and private exclusives, to give Compass agents and clients access to listings unavailable on third-party sites like Zillow.
• While critics argue that Compass’ push for private exclusives could limit transparency and harm consumers, Reffkin contends this strategy benefits sellers by protecting property value and offering greater control.

?? RFR faces third foreclosure filing in a month as lenders lose patience

Despite being 96% leased, 285 Madison is heavily overleveraged, with $419 million in debt against a reappraised value of $300 million, down by half from its prior valuation.

• The swift foreclosure action suggests lenders are losing patience after RFR previously defaulted on $205 million in subordinate debt and repeatedly sought extensions and forbearances.
• This is the firm’s third pre-foreclosure filing in a month, as the firm battles defaults on other high-profile properties like 17 State Street and the Chrysler Building ground lease.

?? Oak Row buying Aimco’s bayfront Brickell assemblage for $520M

The region’s largest development site deal to date, which could climb to $540 million if Oak Row opts for seller financing, outpaces Ken Griffin’s $363 million purchase of a nearby bayfront lot.

• The site includes the Brickell Bay Office Tower and Yacht Club Apartments and offers 485 feet of bay frontage and zoning potential for over 3.1 million square feet of mixed-use supertall developments.
• Aimco, the seller, expects to net $300 to $320 million in proceeds from the deal, most of which will be returned to shareholders, with closing anticipated in March.
• Oak Row, led by Erik Rutter and David Weitz, is planning a transformative redevelopment of the site, with plans to “collaborate with world-class talent” on a project.?

THE CLOSE:?

Will Steve Ross transform Palm Beach County into another Silicon Valley? Keep reading TheRealDeal.com to find out.

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