Oak Row Equities scored a $210.5 million construction loan for a 324-unit multifamily tower in Edgewater, The Real Deal has learned.
The deal comes amid a South Florida construction financing flurry, which has continued despite higher interest rates and a slowdown of apartment lease-ups due to record recent deliveries last year.
Oak Row, led by Erik Rutter and David Weitz, plans the 38-story project, called 2900 Terrace, on a 1.5-acre site on the northeast corner of Northeast 29th Street and Northeast Fourth Avenue in Miami. Alex Karakhanian’s Lndmrk Development is partnering on the project.
Bank OZK provided the $142.5 million senior loan, and Canyon Partners Real Estate provided the $68 million mezzanine loan, according to a source.
Construction of 2900 Terrace is expected to start immediately, and completion is slated for the fourth quarter of 2027, the source said.
Christopher Peck and Brian Gaswirth were part of the JLL team that represented the borrower.
Designed by Arquitectonica, 2900 Terrace will consist of one-bedroom to three-bedroom apartments and include more than 500 parking spots. Amenities will include a south-facing deck, pool, co-working spaces and two padel courts.
Oak Row, which has offices in Miami and New York, has risen to prominence in South Florida real estate in recent years.
It is under a $520 million contract for the 4.3-acre bayfront Brickell site consisting of the 32-story Brickell Bay Office Tower at 1001 Brickell Bay Drive and the adjacent 31-story, 357-unit Yacht Club Apartments at 1111 Brickell Bay Drive. The property can be developed with more than 3.1 million square feet in several supertalls with a mix of uses.
Oak Row and its partners also recently completed the 1 million-square-foot Wynwood Plaza project with a 12-story, 509-unit apartment building and a 12-story, 266,000-square-foot office building at 95 Northwest 29th Street in Miami’s Wynwood. It also has retail and a public plaza.
San Francisco-based Shorenstein, New York-based L&L Holding Company and Marcelo Claure’s Claure Group partnered on Wynwood Plaza.
In downtown Miami, Oak Row plans the 45-story, 526-unit First & Fifth apartment tower at 49 Northwest Fifth Street and 50 Northwest Sixth Street. Also in Edgewater, Oak Row is developing the 41-story, 399-unit 2600 Biscayne apartment tower with about 187,000 square feet of commercial space at 2600 Biscayne Boulevard.
In other recent construction loans, Craig Robins’ Dacra and its partners landed $125 million to build the 20-story, 107-unit Cassi in the Miami Design District, and Immocorp Ventures scored $117 million for a 382-unit apartment complex at 2484 Pinewood Avenue in West Palm Beach’s Northwood District.
Last year, developers completed a record 18,600 apartment units across South Florida, outpacing the 15,000 net new leases, according to CoStar Group. This has slowed lease-ups at new projects and prompted landlords to allow more concessions.
A slowdown of construction starts will temper the oversupply, with demand expected to catch up late this year and into the coming two years.
