New York-based real estate developer Savanna has successfully obtained a substantial construction loan of $380 million to fund its ambitious waterfront residential project named Olara in West Palm Beach, Florida. This financial backing is provided by a consortium that includes One Investment Management, Sculptor Capital Management, Octo Capital Management, and Zeckendorf Development.

Located at 1919 North Flagler Drive, the Olara project will comprise two high-rise towers overlooking the scenic Intracoastal Waterway. The first tower will stand at 26 stories, housing 287 condominium units, while the second will consist of 170 rental apartments. Notably, the ground level will feature a restaurant led by renowned chef José Andrés.

Project Timeline and Financial History

The anticipated completion date for the Olara development is set for 2027. In a previous financing round two years ago, Savanna secured a $50 million construction loan from Madison Realty Capital. The developer assembled the project’s 3.4-acre site for approximately $30 million, as indicated by property records.

Emerging Trends in Luxury Real Estate

Olara is part of a growing trend of high-end condominium projects emerging in West Palm Beach, driven largely by a decrease in available luxury real estate on the adjacent affluent Palm Beach island. Other notable developments in the area include

• Shorecrest by Related Ross,
• South Flagler House, and
• Ritz-Carlton Residences by Related Group.

Despite the challenges posed by elevated interest rates, developers in South Florida have been able to secure financing, capitalizing on strong pre-sales. However, a representative for Savanna opted not to disclose the pre-sale figures for Olara.

Recent Developments in South Florida Financing

Noteworthy financial transactions in the region this year include a $390 million loan linked to a project by Mast Capital and Starwood Capital Group in Miami Beach, alongside a $285 million loan for a collaboration between Terra and One Thousand Group for a Major Food Group-branded development.

For ongoing updates on this emergent market and similar projects, continue to stay informed.

Contact: Julia Echikson at je*******@co****************.com.