South Florida, September 3, 2025
News Summary
A regional lender maintained a conservative underwriting approach while financing several major South Florida developments. The bank led a $475 million senior construction tranche in a $600 million West Palm Beach condo package, provided a $181 million loan for a mixed‑use tower in Miami’s Edgewater, and extended a $65.3 million senior loan for a Wynwood multifamily project paired with a $24 million mezzanine. Management emphasizes low loan‑to‑cost targets around 50–55% and prefers experienced sponsors. Deals are often structured with third‑party mezzanine or whole‑loan debt to bridge scarce equity in the current market.
Bank OZK doubles down on low‑leverage construction lending while financing major South Florida projects
Bank OZK has led a string of large construction financings in South Florida this year while holding firm to a conservative lending model focused on low leverage and experienced sponsors. The bank provided the senior piece for a $600 million condominium package in West Palm Beach and closed sizeable construction loans for two Miami-area mixed-use and multifamily projects, underscoring its continued appetite for large-scale development with measured risk.
Top-line transactions
The bank served as sole senior lender on a major luxury condominium development in West Palm Beach, providing $475 million of the total $600 million financing package. In Miami, the bank originated a $181 million construction loan for a large mixed‑use tower in Edgewater and closed a $65.3 million senior construction loan for a 12‑story multifamily project in Wynwood, paired with a roughly $24 million mezzanine facility to complete that capital stack.
Why the conservative stance matters
Bank OZK’s lending group in the Southeast emphasizes a sub‑60 percent loan‑to‑cost approach across its portfolio, with an average RESG loan‑to‑cost near 50 percent. That posture reflects lessons learned from prior downturns and a preference to partner with sponsors who have track records on similar projects. The bank often structures senior financing at roughly 50–55 percent of cost, leaving room for mezzanine lenders or equity to fill the balance when sponsor capital is constrained.
Project snapshots
West Palm Beach luxury condos
The West Palm Beach luxury condominium development consists of two 28‑story towers offering 105 high‑end residences, with unit sizes ranging from several thousand square feet up to well over 15,000 square feet and pricing at the top end of the market. The project is under construction and expected to reach significant vertical milestones later this year, with delivery anticipated in 2027.
2600 Biscayne Boulevard, Edgewater (Miami)
This mixed‑use tower will contain 399 rental residences and about 187,000 square feet of office and retail space. The building occupies a full city block with Biscayne Bay views and significant pre‑leasing for the office component. Design highlights include landscaped rooftop terraces, wellness amenities, divisibly planned office floors with high ceilings and floor‑to‑ceiling glass, and an extensive residential amenity program featuring multiple pools, fitness facilities, and coworking spaces. The developer closed on a $181 million construction loan to fund the project.
2000 Wynwood (Miami)
The Wynwood project is a 12‑story building with 310 apartments, approximately 12,500 square feet of ground‑floor retail and roughly 308 parking spaces. The developer secured a $65.3 million senior construction loan from the bank and supplemented it with about $24 million of mezzanine financing, creating a nearly $90 million capital stack for the site.
Leadership and regional strategy
The bank’s Southeast originations team is led by a senior executive with more than three decades of industry experience and more than a decade at the bank. That team covers Florida, Georgia, the Carolinas and other regional markets. South Florida remains the bank’s largest market by loan volume, where it competes with local lenders, national banks and institutional debt funds.
The regional group attributes growth to long‑standing relationships, deep market knowledge and willingness to remain active through cycles. The bank has scaled its maximum deal size over time and has a formal guideline limiting individual construction loan commitments at higher levels, a policy that has not materially constrained activity given the rarity of billion‑dollar developments within its underwriting parameters.
Market conditions and lending approach
Developers face persistent pressure from construction cost inflation and an uneven private equity market for limited partner commitments. Tariff uncertainty and elevated interest rates have added complexity, while sponsors are adjusting project scopes and budgets to account for higher costs. The bank’s approach remains steady: prioritize seasoned sponsors, avoid first‑time developers on large builds, and underwrite at conservative leverage levels. The bank is also comfortable working alongside mezzanine lenders and commonly evaluates deals where a mezzanine partner fills the capital gap.
What this means for South Florida development
These loans signal that conservative, sponsor‑focused construction finance is still active and can support sizable, market‑defining projects. If interest rates ease and equity returns normalize, activity could accelerate as developers re‑enter paused pipelines. Until then, many projects will rely on layered capital stacks that combine senior construction loans with mezzanine financing or alternative whole‑loan structures.
Frequently Asked Questions
What types of projects did the bank finance?
The bank financed a luxury condominium development in West Palm Beach, a large mixed‑use tower in Edgewater with both office and residential components, and a 12‑story multifamily building in Wynwood with ground‑floor retail.
How large were the loans?
Key loans included $475 million senior for the West Palm Beach condo package (part of a $600 million total), $181 million for the Edgewater mixed‑use tower, and $65.3 million senior for the Wynwood multifamily building, which also paired with roughly $24 million in mezzanine financing.
Why does the bank emphasize low leverage?
The bank prefers lower loan‑to‑cost ratios to reduce downside risk during market downturns and to ensure projects can withstand cost inflation or valuation pressure. The borrower selection favors experienced sponsors and proven project teams.
How are developers filling capital gaps when equity is scarce?
Developers are pausing projects, combining senior loans with mezzanine capital, or obtaining whole loans from debt funds to increase leverage when limited partner equity is harder to secure.
Will construction activity pick up if rates fall?
Lower interest rates would likely encourage developers to restart or accelerate projects, especially those waiting for improved financing conditions. Many sponsors are monitoring the rate cycle before committing to new starts.
Key features at a glance
| Project | Location | Loan Size (Senior) | Project Type | Notable Details |
|---|---|---|---|---|
| South Flagler House | West Palm Beach | $475,000,000 | Luxury condominium (two towers) | 105 units, high‑end finishes, delivery targeted 2027 |
| 2600 Biscayne | Edgewater, Miami | $181,000,000 | Mixed‑use: office + rentals | 399 units, 187,000 sq ft office/retail, strong pre‑leasing |
| 2000 Wynwood | Wynwood, Miami | $65,300,000 | Multifamily with retail | 310 units, 12,500 sq ft retail, $24M mezzanine |
Deeper Dive: News & Info About This Topic
Additional Resources
- Commercial Observer: Bank OZK, Clearline Wynwood (Aug 2025)
- Wikipedia: Bank OZK
- Financial Times: Bank OZK / regional lending coverage
- Google Search: Bank OZK South Florida construction lending
- CoStar: Related Ross scores $600M financing for Florida condo
- Google Scholar: Related Ross 600 million Florida condominium
- ProfileMiami: Related Group & GTIS secure $328M construction loan (Baccarat Residences)
- Encyclopedia Britannica: Related Group (search)
- BusinessWire: Oak Row Equities closes $181M construction loan for 2600 Biscayne
- Google News: 2600 Biscayne construction loan Bank OZK
Author: Construction CA News
CALIFORNIA STAFF WRITER The CALIFORNIA STAFF WRITER represents the experienced team at constructioncanews.com, your go-to source for actionable local news and information in California and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rose Parade, Coachella, Comic-Con, and the California State Fair. Our coverage extends to key organizations like the California Building Industry Association and Associated General Contractors of California, plus leading businesses in technology and entertainment that power the local economy such as Apple and Alphabet. As part of the broader network, including constructionnynews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic landscape across multiple states.
