Savanna Nabs $55M Construction Loan for First South Florida Venture
By Julia Echikson March 22, 2023 5:56 pm
reprints
Savanna has secured $55 million in financing from Madison Realty Capital for a luxury condo project in West Palm Beach, property records show.
The Olara — a 275-unit complex with two, 26-story towers — is the New York-based developer’s first venture in South Florida. The condo building, at 1919 N. Flagler Drive, faces the Intracoastal Waterway, about two miles north of the city’s downtown.
Since 2021, Savanna has been assembling the 3.4-acre site, paying nearly $30 million in total, according to property records.
Sales, led by Douglas Elliman, got underway in January with asking prices starting at $2 million. A representative for the developer declined to say how many units have gone under contract so far.
The financing includes a $5 million mezzanine loan and $50 million to fund the construction, which is projected to end in 2026. A representative for Madison Realty Capital declined to comment. Eastdil Secured represented Savanna.
The Olara, designed by Arquitectonica, will feature a 30,000-square-foot grocery store and restaurant on the ground floor, helmed by a yet-to-be-named celebrity chef. The development will also feature an 80,000-square-feet amenities deck on the sixth floor and a private marina by the Intracoastal Waterway.
Olara is the latest luxury condo development to be erected in West Palm Beach, historically a working- to middle-class town, in response to the demand in nearby Palm Beach where inventory remains tight.
Forest Development and Dan Kodsi’s Royal Palm Companies scored a $269 million construction loan last year for waterfront condo development near West Palm Beach. In similar projects, Two Roads Development and Alpha Blue Ventures together secured a $121.5 million loan, and BGI Companies secured $82 million in financing, to name just a few.
Earlier this month, the Related Group completed Icon Marina Village, a 399-unit luxury rental property up the road from Olara.
Julia Echikson can be reached at jechikson@commercialobserver.com.
Update: The article was amended to include Eastdil Secured’s involvement.
