Amid efforts to finalize Miami's largest land deal, Oak Row Equities and Lndmrk Development locked in $210.5M in construction financing for a luxury rental tower in Miami’s Edgewater.
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The developers plan to break ground on the 38-story 2900 Terrace apartment building immediately and deliver the project by late 2027, they announced Friday. The debt package includes a $142.5M senior loan from Arkansas-based Bank OZK and a $68M mezzanine loan from California-based Canyon Partners Real Estate.
Oak Row and Lndmrk purchased the 1.5-acre site in 2022 for $22.5M and landed the work permits for the Arquitectonica-designed building last month.
The pair plan for 324 one-, two- and three-bedroom units ranging from about 756 SF to 1,473 SF, according to site plans in Miami-Dade County property records.
“This development is the result of a highly focused investment thesis grounded in rigorous, data-driven analysis of supply-demand dynamics within Miami-Dade’s multifamily market,” Oak Row Managing Partners Erik Rutter and David Weitz said in a joint statement. “Oak Row identified a significant undersupply of two- and three-bedroom residences, particularly those offering the size, quality and services today’s renters demand.”
Set to rise at 401 NE 29th Terrace, the building will also feature 8K SF of restaurant space and 8K SF of ground-level retail along with 500 parking spaces.
The building will have padel courts, an outdoor pool, podcast and content creation studios, coworking space, a sauna, a golf simulator, a theater and a playroom for children.
A JLL team of Christopher Peck, Brian Gaswirth, Nicco Lupo, Nick Lavin and John Lowe advised Oak Row on the deal.
Bank OZK executives said in April the bank would reduce its heavy concentration in construction and development loans with the intention of getting into more conventional lending. It announced in October that it would put a $500M cap on new loans to manage its exposure, as many of the projects it underwrote have struggled with vacancies.
But it has still been active in its preferred market of South Florida, with three loans in recent weeks for more than $777M combined. That includes the latest sum to Oak Row, the bank's third construction loan to the developer.
Oak Row is still pushing for more. It started the year by going under contract for Florida’s largest land deal in history, agreeing to pay $520M for an almost 4.3-acre site at 1001 and 1111 Brickell Bay Drive. The deal is expected to close sometime this year.
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