Billionaire Related Ross Chairman and CEO Steve Ross secured $600 million in financing for his planned South Flagler House condo project in West Palm Beach.
It marks the largest condo construction financing in South Florida so far this year.
Bank OZK provided $475 million as the senior secured lender in the deal, according to a press release. New York City-based GoldenTree Asset Management, led by founder Steven A. Tananbaum, partnered with TZ Capital for an additional $125 million mezzanine loan. Tananbaum’s son Tyler Tananbaum and Sam Zuckert founded West Palm Beach-based TZ Capital in 2023.
Designed by Robert A.M. Stern Architects, South Flagler House is planned for 1355 South Flagler Drive in West Palm Beach. Ross bought the 3.4-acre waterfront site for $194.6 million in 2023 and launched sales for the project that same year. Construction has begun, and the towers are slated for completion in 2027, the release shows.
The planned 28-story, two-tower project will have 105 units. It offers the most expensive condos in the development pipeline in West Palm Beach. Prices now start at $7.9 million, and range up to $73 million for the penthouse, according to the release.
Amenities in the towers will include a pool, spa facilities, fitness center, yoga studio, pickleball courts, golf simulator, salon, private dining room, catering kitchen, wine tasting room, library, media room, business center, private offices, playroom, dog run and a sculpture garden, according to a brochure for the project.
The towers will also have social and hosting spaces, including a private dining room, catering kitchen, game room, card playing room, cocktail lounge, wine cellar, library and media room. South Flagler House will also have private offices and co-working spaces, a children’s playspace and a teen lounge, the release shows.
Bank OZK is the most active construction lender in South Florida. The Little Rock, Arkansas-based bank, helmed by Chairman and CEO George Gleason, provided a record $668 million in construction financing for the planned Waldorf Astoria Hotel & Residences in Miami in June of last year. It remains Florida’s largest ever condo construction loan.
Even as economic uncertainty and market gyrations have rocked markets, lenders continue to back South Florida’s luxury condo pipeline. In West Palm Beach, dozens of projects totaling more than 6,000 units are in the works, including Ross’ planned Shorecrest. New York City-based Savanna scored a $380 million loan in March for its waterfront Olara project in West Palm Beach.
