Steve Ross Secures Record $600M Loan for New Luxury Condo in West Palm Beach

1355 South Flagler Drive, West Palm Beach, Florida, USA - In an exciting development for West Palm Beach’s luxury real estate scene, Steve Ross, the Chairman and CEO of Related Companies, has secured a whopping $600 million in financing for the South Flagler House condo project. This funding marks the largest condo construction financing in South Florida for 2023, a testament to the continued vibrancy of the region’s upscale market despite wider economic uncertainties. According to The Real Deal, the lending powerhouse Bank OZK contributed $475 million as the senior secured lender, while GoldenTree Asset Management, along with TZ Capital, chipped in an additional $125 million as a mezzanine loan.

Located at 1355 South Flagler Drive, the South Flagler House is crafted by renowned designer Robert A.M. Stern Architects. Spanning two 28-story towers, the project will feature 105 luxurious units, with starting prices of $7.9 million and the penthouse priced at an eye-popping $73 million. Despite economic headwinds, lenders are backing South Florida’s luxury condo landscape, which is noteworthy considering over 6,000 units are currently in progress throughout West Palm Beach.

What’s Notable About the Financing?

Steve Ross’s financing venture does not come without context. He purchased the 3.4-acre waterfront site for $194.6 million in 2023 and wasted no time in launching sales. Construction took off in April 2024 and is anticipated to wrap up in 2027. The project promises an extensive array of amenities, including a pool, spa, fitness center, yoga studio, and more—things that would make any buyer’s heart race.

Bank OZK’s involvement is particularly intriguing as the bank has made waves as South Florida’s most active construction lender. A recent example of its ambitious endeavors includes a record $668 million loan for the Waldorf Astoria Hotel & Residences in Miami, which stands as the largest condo loan in Florida’s history. Their backing of the South Flagler House shows confidence in the area’s potential.

The Bigger Picture of Luxury Living

Ross’s project isn’t happening in a vacuum. According to Credaily, South Florida is in the midst of a luxury real estate renaissance, especially with branded condominiums finding a strong footing in the market. Over 12 branded condo projects, including famous names like Mercedes-Benz Places and Pagani Residences, are currently underway, catering to buyers looking for unique, high-end experiences.

This shift reflects a broader trend where wealthy buyers increasingly seek residences that align with their lifestyle choices and personal brands. Such developments are finely tuned to offer exclusive amenities that promise a curated lifestyle, setting the standard high for all players in the market.

However, caution is warranted. Experts have raised concerns that some lesser-known brands may struggle to deliver the expected level of service to discerning customers. The Miami Association of Realtors has noted a significant increase in condo sales over $1 million, showcasing robust demand for upscale properties. Still, there are questions about the long-term sustainability of such growth, particularly as relocations to South Florida seem to be slowing.

As we look on, it’s clear that the landscape of luxury living in places like West Palm Beach is not only evolving but also brimming with potential and challenges alike. With continuous investments and innovative projects on the horizon, one can only wonder how this vibrant milieu will shape the future of upscale real estate in South Florida.

With Stephen Ross pursuing plans to invest approximately $10 billion in West Palm Beach, including more office projects and upcoming luxury condo developments, the area’s transformation is only just beginning. Whether this marks the onset of a new era for luxury living in South Florida remains to be seen, but for now, there’s no denying that it’s an exciting time to be observing from the sidelines.

Stay tuned as this story continues to unfold, marking a chapter in West Palm Beach’s real estate saga like no other.