Savanna Nabs $55M Construction Loan for First South Florida Venture

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. 

SEE ALSO: Namdar and Empire’s 345 Seventh Avenue Headed to UCC Auction

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.