The city of West Palm Beach is a financial partner as owner of the land leased to CityPlace Partners and as a guarantor of $55 million in tax-exempt bonds to pay for project infrastructure and four parking decks.

The developers are expecting an 11% return on their $250 million investment, according to published reports. If they achieve that, it would rank Palladium at CityPlace among the top 10%-15% in profitability for shopping centers in this country, say industry sources.

Ground-floor retail, with live/work lofts above are housed in Disney theme park-like groupings of mid-rise buildings. These line new and existing streets, linking the city's older shopping/restaurant/entertainment section centered on Clematis Street with the concert hall/legitimate theater venue at Kravis Center.

Centerpiece of Palladium is the 1920s former First Methodist Church that has emerged as a performance center after a $5 million developer-sponsored restoration. Another project showpiece is a $3 million fountain whose computer-controlled water jets are illuminated at night.

In addition to the Macy's, key tenants of the 600,000-sf retail space include a 30,000-sf Barnes & Noble, a 27,000-sf Wild Oats Gourmet Market and a 16,000-sf FAO Schwartz. Retail rents range from $40 per sf to $80 per sf, although some may be paying as much as $100 per sf.