With Optimism Giving Way To More Volatility, Maxim Capital Group Stepping Up Lending

The energy was palpable in January when Jason Bordenick visited Miami with his partners at New York City-based commercial real estate bridge lender Maxim Capital Group.

Many in the industry were operating on the highs of the Federal Reserve cutting interest rates three meetings in a row and heightened investment volume across the nation.

“The amount of positivity and excitement and momentum made it seem like it was 2005, 2006,” said Bordenick, who is also Maxim's portfolio manager. “Everybody was saying, ‘Interest rates are coming down, the economy is doing so well, nothing can disrupt the market.’”

But while Bordenick was caught amid Miami's perpetual optimism, the quote “the worst of loans are made in the best of times” was rattling around in his head.

“I think our biggest fear in terms of going into 2026 was overexuberance, a lot of competition [and] people forgetting that there's always a problem lurking around the corner,” he said.

Now, four months into 2026, rising macroeconomic uncertainty — heightened by the U.S. and Israel's war with Iran — has begun to weigh on the market, threatening construction pipelines and deal flow. But for Maxim, the pullback is an opportunity.

“When others are not lending and the capital markets are frozen, [because] we don't rely on the capital markets, that's when we're able to write our most attractive loans,” Bordenick said.

The more-than-15-year-old company, which has funded over 720 deals with more than $9B, has been one of the more active lenders in the South Florida market in the first four months of 2026.

At the beginning of March, Maxim provided a $70M loan to 280 E. Palmetto Park Road LLC for the construction of the 28-unit Glass House Boca Raton condo project — which had more than one-third of units presold.

Less than two weeks later, the firm provided a $31M construction loan to LD&D and One Capital for the 24-unit condo Surf Row Residences, which has generated $23M in presales.

Despite political pressure for more cuts, the Fed held its benchmark rate flat at the end of January at 3.5% to 3.75%, citing tariff-related price increases still working through the economy. It did so again in March, citing the same concerns, plus the new military conflict.

Oil prices have spiked, creating another obstacle for developers grappling with inflated construction costs as a result of tariffs. Copper wire and cable costs were up 19% year-over-year in March, while steel product prices were up 15.4%, according to Associated Builders and Contractors.

It’s too early to know the exact effect the recent volatility will have on the market — with a tenuous ceasefire and a naval blockade of the Strait of Hormuz still in effect. Maxim hasn't made any moves to shift its strategies just yet, but it isn't in any rush to close deals either, Bordenick said.

"We're always data gathering [and] fact finding," he said. "Data also lags, so oil being at $120 a barrel for a week is very different than oil being $120 for three months. It's difficult to kind of quickly shift your business out of fear or out of evaluation."

Bordenick declined to comment on the details of Maxim's most recent South Florida deals but said both projects demonstrated “meaningful” presales and strong asking prices for units that made the company “comfortable with the desired construction financing.”

Maxim also lent $70M to a condo project in Queens' Long Island City neighborhood in February.

The company typically finances 40% to 60% of a project’s construction costs, averaging around 50% for condo developments, but it doesn't take a one-size-fits-all approach to lending, Bordenick said.

Instead, Maxim prioritizes experienced developers with whom it has existing relationships and underwrites deals based on sales velocity and whether the product aligns with current market demand, he said.

South Florida is coming off of the hottest year for construction lending since 2022, with lenders like Maxim funneling billions into construction projects, a majority of which were condos, even amid tariff policy uncertainty.

But moving forward, there may be more caution from lenders due to the growing pressures on the economy. While Maxim hasn't paused any deals, there is still a level of cynicism in the market.

"We're a lender, we're a pessimist," Bordenick said. "We're always thinking that things are going to get worse from here."