Related Group, Merrimac Secure $160M for Waldorf Astoria Condo in Pompano Beach

Despite vowing to slow down its construction lending, Bank OZK has funneled $159.5 million to Related Group and Merrimac Ventures to build an oceanfront Waldorf Astoria-branded condo development in Pompano Beach, Fla.

The Waldorf Astoria Residences Pompano Beach will feature 92 units on a 2-acre site at 1350 South Ocean Boulevard. Over 70 percent of the units are under contract, according to the South Florida-based developers. 

The 28-story project will mark the first stand-alone condo development for Hilton’s Waldorf Astoria brand. Construction started in April, with completion expected in late 2027. News of the construction loan was first reported in The Real Deal.

In recent years, Bank OZK has emerged as South Florida’s most prolific construction lender. But as interest rates rose, the Arkansas bank is now seeking to reduce its exposure to construction and development loans, CEO George Gleason said in April, per The Wall Street Journal. 

Still, South Florida appears to be too hot a proposition to ignore. The Arkansas bank has remained active, and last month provided a $72 million construction loan for a multifamily project in Fort Lauderdale. 

The Waldorf Astoria Residences is the latest luxury oceanfront condominium planned in Pompano Beach, a historically working- and middle-class town that, since the pandemic, has attracted throngs of developers.  

In 2023, Fortune International Group and Oak Capital secured a $259 million construction loan, also from Bank OZK, for a Ritz-Carlton-branded condo development in Pompano Beach. Since the pandemic, Related Group has also developed two luxury condominiums there, called Solemar and Casamar. 

Just last month, the 5.1-acre Beachcomber Resort and Villas hit the market, seeking $175 million as a condo redevelopment opportunity. 

Julia Echikson can be reached at jechikson@commercialobserver.com.