Developers Secure Financing for Luxe Hotel and Condo Project in Aman Miami Beach

Billionaire investors Vladislav Doronin and Len Blavatnik have landed a $277 million construction loan for a Miami Beach condominium and luxury hotel, one of the largest loans for a South Florida project since the start of the Covid-19 pandemic.

The loan, which was provided by a consortium of lenders, will be used to finance the construction of the project, which is expected to be completed in 2023.
Mr. Doronin's development firm OKO Group and Mr. Blavatnik's Access Industries are teaming up to build a 18-story beachfront tower with 22 apartments. They are also renovating the neighboring former Versailles hotel, which will have 56 rooms.

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The project is branded by Aman Resorts, a company Mr. Doronin acquired in 2014. Aman Resorts is known for its boutique properties featuring high-end service and room rates that can go for more than $4,000 a night.

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Bank OZK, a midsize bank headquartered in Little Rock, Ark., has emerged as the country's most aggressive financier of high-end condominium projects over the past decade. The bank specializes in lending for big construction projects that many other banks, under pressure from regulators to reduce their exposure to development loans because of their perceived risk, often avoid.

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The latest loan from the bank comes at a challenging time for the real estate sector. With many banks reducing the amount of commercial mortgages they issue, particularly those backed by office buildings, and higher interest rates making it harder for developers to turn a profit on construction projects, some developers are ditching their plans.

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Despite the challenges, mortgage brokers say that developers with a good track record, or those who bought development sites years ago at low prices, are still able to get loans. This is because lenders are more willing to work with these types of borrowers.

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The loan for the Aman project is further evidence that money is still flowing into ambitious real-estate developments in South Florida. This shows that despite the current economic climate, there is still interest in investing in large-scale projects in the area.
The Miami area has seen a boom in real estate investment in recent years, as developers look to capitalize on an influx of wealthy new residents since the start of the pandemic. Last year, developers broke ground on Miami's future tallest skyscraper, a Waldorf Astoria-branded hotel and apartment tower that will stand over 1,000 feet tall.

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Bank OZK has been a major player in the recent property boom in Florida, financing some of the state's most expensive construction projects. In 2018, the bank issued a $558 million construction loan against a condo development in Sunny Isles Beach. The following year it financed a Tampa mixed-use development with a $664 million loan.

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According to Aman's head of global residences, Vanessa Grout, around 90% of the units were sold to American buyers, and around half of those were sold to buyers from high-tax states like New York and California who are considering moving their residency to Florida.

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Mr. Blavatnik, who was born in Ukraine, has investments in a number of industries, including energy, entertainment and real estate. Mr. Doronin, who was born in what is now St. Petersburg, Russia, has also developed an Aman resort, private club and hotel in Manhattan, and is developing a number of other projects in South Florida.