Brannon Hamblen, Michael Moran, Greg Newman and Richard Smith

At a time when the fortunes of the construction industry and the data center industry have become so intertwined as to be somewhat dependent on each other, the success of Bank OZK — which doesn’t dabble in that kind of digital infrastructure deal — shows just how entrenched they’ve become as a preferred construction lender. 

Last year, the firm booked $5 billion in originations with $28.8 billion in total commitments, with a balanced portfolio that comprised just over a quarter multifamily. This included deals such as a $278 million senior loan to Hines for the first phase of the Riverwalk project in San Diego, a complex deal for a megaproject expected to eventually cost $4 billion.

“We could do a fairly middle-of-the-road multifamily project just as good as anybody else, but I don’t think everybody else can deal with complexity as well as we do,” said Michael Moran, who works on a team with Brannon Hamblen, Greg Newman and Richard Smith. “I would point out that it’s not just the relationships we have with top-tier sponsors, but it’s that we’re not siloed. When it comes to origination, we involve legal, the credit structuring team and the asset management team to navigate through the complexity.”

Many deals involved complex and even eccentric agreements with municipalities, and much of that action happened in South Florida. OZK capitalized on that geographic shift and landed a number of big deals, included a $475 million loan for Related Ross’ South Flagler House in West Palm Beach, the area’s largest condo project, and a $329 million loan for the Four Seasons Private Residences in Coconut Grove, a Miami development with CMC Group and Fort Partners. 

What helped survive and thrive in a year when Liberation Day upended cost assumptions and supply chains for construction projects was patience. A steady hand that can reassure clients that they’ll be around after the shock has been processed — and an experienced team that can find solutions when there’s both extensive competition and existing challenges to find equity to close a deal — can pay off, Moran said 

“The amount of debt capital that’s out there right now in the world is the most that I’ve ever seen,” he said. “The competition for good sponsors and sensible locations is just fierce.”