Stephen Ross and Jorge Perez: From Partners to Potential Rivals in Miami

For more than four decades, Stephen Ross and Jorge Perez, two developers from New York City and Miami respectively, have been in a business partnership. Their respective companies have almost identical names.

The alliance between Mr. Ross's Related Companies and Mr. Perez's Related Group, which included an agreement to not interfere with each other's home markets, has been terminated. This means that the two companies are now free to compete directly with one another.

A potential challenge to their new relationship could be the acquisition of a highly valuable piece of property in downtown Miami. Recently, 15.5 acres of land owned by Genting Malaysia Bhd. was put up for sale, with the Southeast Asia casino operator hoping to make $1 billion from the transaction. Both men have expressed interest in the land.

When asked by The Wall Street Journal if he was interested in the offer, Mr. Ross replied affirmatively, but noted that he was unsure if the price was right.

Jon Paul Perez, the president of Related Group and the son of Jorge, expressed his interest in prime, waterfront land when he said, "We're always interested in prime, waterfront land."

Two developers have considered joining forces to make an offer on the property, according to a source with knowledge of the situation. However, no agreement has been finalized and the expiration of their territorial agreement gives Mr. Ross the opportunity to compete directly against his former partner for the desirable piece of land.

Recently, Mr. Ross has taken advantage of the agreement's expiration by engaging in a couple of deals in the Miami area. He collaborated with Swire Properties Ltd. on a high-rise office tower in Brickell City Centre, which is said to be the tallest commercial office building in the city.

Mr. Ross had his sights set on a 4-acre beachfront property in Miami Beach, the former site of the Deauville Beach Resort. His plan was to construct a new hotel and development, but a voter referendum denied his proposal, leaving him to reconsider his plans. His acquisition of the land was dependent on his plan being approved.

Jorge Perez and Mr. Ross have had a long-standing relationship since they both graduated from the University of Michigan in the 1970s. In 1972, Mr. Ross created Related Companies in New York, which was dedicated to providing affordable housing. Seven years later, he and Jorge Perez joined forces to form Related Group in Florida.

The two parties have not disclosed the specifics of their agreement, whether it was a gentlemen's agreement or a legal contract, but it included a provision that Mr. Perez would stay away from New York City and Mr. Ross would not build in Miami. If this arrangement was still in effect, Mr. Ross would not have the same freedom to pursue projects in southern Florida.

The two developers have not revealed the reasons behind their decision to end the ownership agreement for Related Group in Florida. Sources close to the situation have reported that Mr. Ross held a 25% stake in the business.

Mr. Ross declared that after a long and successful collaboration, the two parties had a friendly parting. He also suggested that they may look for opportunities to work together again in the future.

According to Mr. Perez, he and his family are the only proprietors of the Related Group.

In the past, Mr. Perez has expressed that the decision to keep their individual lives separate was a major factor in the success of their relationship.

He expressed his thoughts at a conference hosted by the University of Miami in 2013, noting that it was beneficial that he and his partner were in different states. He went on to say that despite their differing opinions, they had managed to form a successful partnership based on shared values.

Mr. Ross has had a long history in South Florida, even before the territorial arrangement was in place. He was raised in Miami Beach and is the owner of the Dolphins football team. Additionally, he owns a home in Palm Beach, and the agreement with Mr. Perez enabled him to expand his presence in that area.

Amid the pandemic, Mr. Ross made a large investment in the downtown West Palm Beach area, purchasing numerous properties and becoming the largest private commercial landowner in the region.

At a recent industry gathering, Mr. Ross expressed that Miami has more potential for growth due to its varied customer base. Even though Mr. Perez is now able to develop in New York City, his son Jon Paul mentioned that the company is now more concentrated on its current location.

He lamented that the best bargains were currently located in Florida.