Oak Row Equities Closes $181M Construction Loan from Bank OZK for 2600 Biscayne Boulevard in Edgewater, Miami

Rhea-AI Summary

Oak Row Equities secures a $181M construction loan from Bank OZK for 2600 Biscayne, a Class AAA mixed-use tower in Miami. The tower features luxury apartments, office and retail space, and exceptional amenities, set to redefine the Edgewater submarket.

Insights

Real Estate Development Analyst

The closing of a $181M construction loan for a Class AAA mixed-use tower in Miami's Edgewater submarket is a significant event in the real estate development sector. This substantial financial backing from Bank OZK highlights the project's potential to reshape the local urban landscape. The pre-leasing rate of 50% for office and retail space indicates strong market demand and confidence in the project's success. It also suggests a trend towards mixed-use developments as a preferred model in urban areas, combining commercial and residential components for a more integrated community experience.

The strategic location within an opportunity zone and proximity to a planned rail stop could further enhance the property's value due to potential tax incentives and improved accessibility. The involvement of Arquitectonica, a globally recognized architecture firm and the inclusion of high-end finishes and amenities, positions the project as a premium offering in the market. This could attract high-profile tenants and affluent residents, potentially driving up the property's overall rental and resale value.

Moreover, the project's commitment to achieving the Gold Certified National Green Building Standard aligns with the growing emphasis on sustainability in construction. This could lead to long-term cost savings through energy efficiency and appeal to environmentally conscious stakeholders. The ripple effect of such a development could stimulate further investment and gentrification in the Edgewater area, impacting local businesses and the real estate market dynamics.

Environmental Sustainability Analyst

The pursuit of the Gold Certified National Green Building Standard for 2600 Biscayne is a commendable aspect of the project, reflecting a broader industry shift towards sustainable development. This certification involves rigorous criteria, including energy efficiency, water conservation and the use of environmentally friendly materials. Achieving such a standard can result in operational cost savings for tenants due to lower utility bills and potential tax benefits. Additionally, it may enhance the building's marketability to tenants who prioritize environmental responsibility in their corporate or personal values.

From an environmental perspective, the inclusion of EV charging stations and the tower's proximity to public transport options could contribute to reduced carbon emissions by encouraging the use of electric vehicles and public transit. The development's focus on outdoor and wellness amenities aligns with a growing demand for health-conscious living and working environments, which could have positive implications for the well-being of residents and employees.

Urban Planning Expert

The development of 2600 Biscayne Boulevard represents a significant addition to Miami's urban fabric, particularly in the Edgewater submarket. The project's scale and design could serve as a catalyst for urban renewal in the area, potentially attracting further investment and development. The mixed-use nature of the tower is in line with contemporary urban planning principles that advocate for density and diversity of use within city blocks to create vibrant, walkable communities.

The inclusion of luxury amenities and high-end finishes suggests an upmarket positioning that could influence the demographic composition of the area, possibly leading to increased property values and changes in the socioeconomic profile of the neighborhood. The development's impact on traffic patterns, public infrastructure and local amenities will also be critical to assess, as these factors can significantly affect the quality of life in the surrounding community.

The project's integration with public transportation, such as the proximity to the planned Northeast Corridor rail stop, is a strategic move that could reduce reliance on personal vehicles and promote sustainable urban transit. This integration is crucial for the long-term viability of dense urban developments and can have a positive impact on the city's overall transportation strategy.

2600 Biscayne is a Class AAA mixed-use tower containing 399 luxury apartments and a 187,000 SF commercial component that is 50% pre-leased

MIAMI--(BUSINESS WIRE)-- Oak Row Equities, a vertically integrated private equity and real estate development company with over $1.6B of development in South Florida, just closed on a $181M construction loan from Bank OZK for 2600 Biscayne Boulevard, a Class AAA office and multifamily tower in Miami’s rapidly-maturing Edgewater submarket. The transaction is one of the largest mixed-used construction loans to close in South Florida in the past year. Newmark (NMRK)’s Dustin Stolly and Jordan Roeschlaub, Chris Kramer and Daniel Matz arranged the financing. 2600 Biscayne’s office and retail space is 50% pre-leased prior to breaking ground, making it one of the most pre-leased new construction office buildings in Miami’s history.

Oak Row Equities, a vertically integrated private equity and real estate development company with over $1.6B of development in South Florida, just closed on a $181M construction loan from Bank OZK for 2600 Biscayne Boulevard, a Class AAA office and multifamily tower in Miami’s Edgewater submarket. (Photo: Business Wire)

“We’re thrilled to close on this sophisticated transaction, one of the largest mixed-use loans in Miami this year,” says Erik Rutter, Managing Partner of Oak Row Equities. “2600 Biscayne elevates Edgewater with superior office space and rental residences of a quality that currently doesn’t exist in this submarket.”

Oak Row Equities acquired the land at 2600 Biscayne in an off-market transaction along with additional density from an adjacent site to create a highly competitive land basis. The project sits on an entire city block in a premier micro-location within Edgewater for trophy office and luxury multifamily with exceptional views of Biscayne Bay. The property is located within an opportunity zone and is one block from the planned Northeast Corridor rail stop.

“Our vision is to create a new future for luxury renters and leading businesses seeking a convenient and walkable location coupled with an unbeatable quality of life in Edgewater,” said David Weitz, Managing Partner at Oak Row Equities. “The tower’s cutting-edge design and unparalleled amenity offerings will push the boundaries of what is to be expected from new construction mixed-use projects in Miami.”

Designed by globally renowned architecture firm Arquitectonica with an ultra-modern aesthetic and state-of-art infrastructure, 2600 Biscayne will feature 187,000 square feet of exquisite office and retail space and 399 luxurious studio to three-bedroom (plus den) rental residences. With high-end finishes and incredible views of Biscayne Bay and the Miami skyline, the design lends a boutique feel to the interior of the sprawling tower. Its sculptural appearance includes a remarkable custom artwork by critically-acclaimed artist Derrick Adams on the western portion of the facade visible from multiple neighborhoods.

2600 Biscayne will achieve the Gold Certified National Green Building Standard. The tower’s offices will be located on the first eleven floors within a glass pyramid-like structure with a contrasting gridded facade. Office tenants will enjoy touchless entry and elevators, easily divisible floor plates, 14’ ceilings with floor-to-ceiling glass, private tenant balconies, and a wide range of indoor and outdoor wellness-focused amenities.

“Oak Row Equities is a top-tier sponsor and Bank OZK is pleased to partner with this impressive team on financing for 2600 Biscayne Boulevard,” stated Greg Newman, Senior Managing Director of Originations at Bank OZK. “This innovative venture will redefine the Edgewater submarket through its world-class architecture and luxury amenities for residents and businesses alike. We are excited to see this upscale project come to life.”

Outdoor amenities exclusive to the office tenants include a landscaped rooftop terrace, exclusive padel court, open-air seating, covered picnic areas, an outdoor wellness and yoga deck, and a fire pit. Inside, a dedicated business lounge, private meeting areas, conference rooms, and an entertainment room with a golf simulator will keep executives and employees engaged and entertained. Vehicular arrival for office tenants will be via a private porte cochére and a designated lobby with gorgeous finishes. A dedicated valet and tenant parking are available along with 24/7 security and access.

The residential portion of the tower will begin 135 feet above the ground offering stunning views from each unit and a rare opportunity to enjoy 360 vistas from studio and one-bedrooms in addition to the larger residences. The home arrival experience will be calming and hotel-inspired.

Multiple levels of residential amenities surpass the quantity and quality of any multifamily building in Miami. Standout spaces include a pet spa, private lounge, yoga studio, and top-of-the-line fitness center. A wraparound 12th-floor amenity deck will have a lap pool, cold plunge, hot tub, luxurious cabanas, and BBQ grills. The tower’s 41st floor will feature a coworking lounge and rooftop deck.

Residents will have a seamless arrival via a separate porte cochére from the office tenants with landscaped, covered waiting areas for ride shares. 2600 Biscayne will have EV charging stations and over 600 parking spaces.

Edgewater offers a multitude of lifestyle amenities such as the lush eight-acre Margaret Pace Park, as well as chic dining and retail options. Wynwood, Midtown, and the Design District are moments away. Whole Foods and a Northeast Corridor rail station will be within blocks upon completion. Miami International Airport, I-95, Miami Beach, and Brickell are easily accessible from Edgewater. There is no better location in Miami.

Oak Row Equities is also developing The Wynwood Plaza, a one-million-square-foot mixed-use campus at 95 NW 29th Street in Miami’s famed Wynwood Arts District, with L&L Holding Company. Designed by renowned architecture firm Gensler, this project will be defined by a half-acre, lushly landscaped public plaza designed by Field Operations that will be the largest in the Wynwood Arts District and one of the largest in all of Miami.

To learn more and inquire about leasing or transaction opportunities, visit: www.oakrowequities.com.

About Oak Row Equities:

Oak Row Equities is a vertically integrated private equity and real estate development company. Founded in 2018 by Erik Rutter and David Weitz with offices in New York City and Miami, Oak Row Equities has expertise in acquisitions, development, architecture, construction, asset management, leasing and accounting. Oak Row Equities has more than $1.6B of development underway, including over four million square feet of Class-AAA real estate. For more information, visit www.oakrowequities.com.

About Bank OZK:

Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides financing on commercial real estate projects throughout the nation. RESG is considered a preeminent, market-leading construction lender focused on senior secured financing for a variety of property types including mixed use, multifamily housing, condominiums, office, hospitality, life sciences, industrial and retail. During the five years ended December 31, 2023, RESG originated $42 billion in new loans. For more information, visit www.ozk.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240312237731/en/

Victoria Shannon

victoria@augustprny.com

631-525-3394

Source: Oak Row Equities

FAQ

What is the name of the private equity and real estate development company that secured the construction loan for 2600 Biscayne?

Oak Row Equities

How much was the construction loan amount secured by Oak Row Equities from Bank OZK for 2600 Biscayne?

$181 million

What type of tower is 2600 Biscayne in Miami?

Class AAA mixed-use tower

How much of the office and retail space at 2600 Biscayne is pre-leased?

50%

Who arranged the financing for the construction loan of 2600 Biscayne?

Newmark's Dustin Stolly and Jordan Roeschlaub, Chris Kramer, and Daniel Matz