The land becomes the first dollar of capital: the developer is paid for the site up front. Rent and revenue share give the county an operating upside.
At $26M for the site, the initial rent is about a 4.2% yield to the county (derived). Compounding 3% a year, rent would reach roughly $2.8M by year 33 (derived).
Per key, the site is about $65,000 and the total project about $750,000 (derived).
The source states the tax exemption but not the basis. Public ownership of the land is the typical reason (CRE360 inference).
Implications
A public land sale converts site cost into capital and moves land risk to the public partner, but it adds a long-dated ground rent with escalators that lenders will size against. Developers in convention and civic projects should price the revenue-share tier against realistic stabilized revenue, not the $77M threshold alone.
Flags: Single source. Story is dated Sept. 29, outside the 48-hour window; included because it was not covered in prior Signals and no stronger in-window hospitality story was retrievable. Yield, escalation and per-key figures are CRE360 derivations. The county's $1B projection is the source's figure.
Related coverage
Key Takeaways
- Selling the site to the county turns land cost into first-dollar capital
- Initial rent is about a 4.2% yield on the county's $26M price with 3% annual escalators
- Revenue share starts only above $77M of gross revenue
Commercial Observer, Related Ross Wins Approval for $300M Convention Center Hotel in West Palm, Sept. 29, 2026
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