MIAMI—Capital is flowing more freely for condo developers than it has in recent years, which is at least little surprising given the stalls and even bankruptcies in the not-to-distance past. Still, challenges remain for condo developers in the current cycle working to secure construction financing.

“The main challenge is distinguishing your project from those in the rest of the market so that a lender—which probably has a limited number of projects it may green light in South Florida—chooses your project over another,” Luis Flores, an attorney in Arnstein & Lehr's Miami office and chair of the firm's Florida Commercial Practice Group, tells GlobeSt.com. “Developers have to come up with very unique designs and a flawless business plan to capture a lender's attention in today's competitive market, with nearly 200 condo towers approved or proposed in South Florida.”

The numbers are at least somewhat staggering. Lenders have to be concerned about the supply-demand issue even in a region where the population is outpacing most of the rest of the nation. Flores says the competition for construction financing is, in part, giving way to some of the most luxurious and sophisticated condo developments in the history of South Florida.