Savanna Secures $380 Million Loan for Luxury Waterfront Development in West Palm Beach
New York-based developer Savanna has successfully obtained a significant financing package amounting to $380 million. This loan will fund the construction of Olara, a luxury residential project located in West Palm Beach, Florida.
Project Overview
The financing is backed by a consortium of partners including One Investment Management, Sculptor Capital Management, Octo Capital Management, and Zeckendorf Development. Olara will consist of two towers at 1919 North Flagler Drive, strategically positioned along the Intracoastal Waterway, approximately two miles from the bustling downtown area of West Palm Beach.
Key Features of Olara
- A 26-story tower featuring 287 condominium units.
- A second tower comprising 170 rental apartments.
- A ground-floor restaurant spearheaded by renowned chef José Andrés.
Timeline and Financial Background
Construction of the Olara project is slated for completion in 2027. Savanna had previously secured a $50 million construction loan two years ago, provided by Madison Realty Capital. The total investment in acquiring the 3.4-acre site amounted to nearly $30 million, as per property records.
Luxury Demand in West Palm Beach
Olara is part of a burgeoning wave of luxury condominium developments in West Palm Beach, driven by a scarcity of available high-end properties on the adjacent Palm Beach island. This trend is evidenced by other prestigious developments in the area, including:
- Shorecrest by Related Ross
- South Flagler House
- Ritz-Carlton Residences by Related Group
Financing Landscape
Despite rising interest rates, developers in South Florida continue to secure financing successfully, largely due to strong pre-sales figures. However, a Savanna representative did not disclose any specific sales data for Olara.
Recent Developments in the Area
This year has witnessed substantial financial activity in luxury real estate in South Florida. Major funding deals include:
- $390 million for a Miami Beach oceanfront project by Mast Capital and Starwood Capital Group.
- $285 million for a development from Terra and One Thousand Group, branded by Major Food Group.
For further inquiries, Julia Echikson can be contacted at je*******@co****************.com.