Southern Land Company Closes $165.9 Million Bank OZK Construction Loan for Houston's 2811 Kirby Mixed-Use Tower

Southern Land Company has closed a $165.9 million senior construction loan from Bank OZK for 2811 Kirby, a nearly 953,000-square-foot mixed-use development in Houston's Upper Kirby district, the company announced Aug. 24. The loan closed Aug. 11, 2026, with construction already underway on the nearly two-acre site at 2811 Kirby Drive.

The project represents Southern Land Company's first development in Houston and carries a total development cost of approximately $270 million, placing the Bank OZK loan at roughly 61 to 62 percent of total project cost. Completion is targeted for 2028.

Project Overview: Two Towers, One Podium

2811 Kirby will rise as two towers from a shared structured parking podium. The taller of the two, a 38-story luxury multifamily building named Lily River Oaks, will contain 331 apartments, including 18 penthouses. Residents will have access to rooftop indoor and outdoor amenity spaces on the 38th floor, including an outdoor pool deck.

A separate 10-story commercial tower will deliver approximately 107,000 square feet of Class AA office space. The seventh floor, spanning both towers, will house a spa, fitness center, and garden deck accessible to both residential and office tenants. Stream Realty Partners is handling leasing for the office component, with asking rents of approximately $55 per square foot — nearly double Houston's average office asking rate.

The development also includes approximately 15,000 square feet of restaurant and retail space, comprising roughly 6,500 square feet of restaurant space within the podium and a separate 10,000-square-foot stand-alone restaurant building.

Executives Cite Market Demand and Project Quality

"We are pleased to reach this important milestone as construction gets underway on our first development in Houston," said Tim Downey, founder and CEO of Southern Land Company. "Securing this financing from Bank OZK reflects the strength of the project and our confidence in the opportunity to create something truly special in Upper Kirby. 2811 Kirby is designed to be a landmark destination where people can live, work, dine and gather, while complementing the character and energy of one of Houston's most distinguished neighborhoods."

Dustin Downey, Chief Investment Officer of Southern Land Company, pointed to office demand dynamics as a driver of the project's positioning. "Tenants today are prioritizing quality, experience, and location, and 2811 Kirby checks all three boxes," he said. "We're already seeing strong interest from groups looking to relocate to Upper Kirby, and this project will offer a level of design, connectivity, and Class AA office space that doesn't currently exist in the Houston market."

Victor Reynoso, Managing Director of Originations at Bank OZK, said the lender was confident in both the location and the sponsor. "Southern Land Company has established a strong reputation for delivering high-quality developments in some of the country's most dynamic markets and we look forward to seeing 2811 Kirby come to life," Reynoso said.

Project Team and Design

Southern Land Company assembled a project team that includes Solomon Cordwell Buenz (SCB) as architect and interior designer, Kimley-Horn for civil engineering, DeSimone Consulting Engineering for structural engineering, and Texas-based ANDRES Construction as general contractor. Southern Land Company's in-house horticulture team is leading landscape architecture design.

The site sits near the River Oaks District in Upper Kirby, one of Houston's established mixed-use neighborhoods.

Bank OZK's Construction Lending Strategy

Bank OZK's Real Estate Specialties Group originated approximately $38.75 billion in new loans over the five years ending June 30, 2026, focusing on senior secured construction financing across a range of property types including mixed-use, multifamily, office, hospitality, and industrial. The 2811 Kirby loan is consistent with the lender's approach of underwriting large-check, ground-up projects with well-capitalized national sponsors in prime infill locations.

Southern Land's Texas Portfolio

Southern Land Company has been active in Texas since 2006. Its current Texas portfolio includes Tucker Hill, a single-family community in McKinney established in 2008; Deco 969, a 27-story luxury mixed-use community in Downtown Fort Worth that opened in 2024; and Lunaroya, an 86-homesite ultra-luxury single-family community under development in Dripping Springs. The company has also previously developed, operated, and sold several multifamily and mixed-use properties across the state, including projects in Allen, Keller, Plano, and Dallas.

Headquartered in Nashville, Tennessee, Southern Land Company describes a current project pipeline valued at $8 billion across nine states.

Sources

Southern Land Company – Official Announcement