Despite high-interest rates fueling a tight lending environment, Kolter Urban recently secured a $182 million construction loan for Art House, a 42-story luxury condominium tower in downtown St. Petersburg.

Brian Van Slyke, regional president, credited the Palm Beach-based real estate development and investment firm’s reputation as an industry leader for its ability to close the financing deal. The 244-unit project at 235 1st Ave. S. is halfway to completion, and he expects it to open in the “second half” of 2025.

Miami-based Coastal Construction broke ground on the mixed-use development, initially estimated at $140 million, in June 2022. Condominium sales have since topped $250 million.

“Kolter’s financial strength and resources allow us to have access to a lot of debt and equity resources,” Van Slyke told the Catalyst. “It is a tough financing market, but we were able to choose a lender that fit our needs.”

Bank OZK provided the nine-figure construction loan, a rarity in Pinellas County. In January 2023, developer John Catsimatidis secured $252 million from the Arkansas-based financial institution to build the Residences at 400 Central.

Persistently high-interest rates and rising construction costs have hindered large-scale projects nationwide. However, Van Slyke noted that development lending is one of Bank OZK’s core business segments.

He lauded the bank’s “strength and ability to do these large loans” and explained the benefits for Kolter. “Even with high-interest rates, it’s still cheaper than equity,” Van Slyke said. “And it’s just part of our … financial strategy for delivering the product…