Amid elevated interest rates, heightened regulatory scrutiny, and tighter credit conditions, U.S. real estate developers are increasingly turning to private credit as their financing vehicle of choice. Once considered a niche or last-resort option, non-bank lenders have emerged in 2025 as a dominant force — offering speed, flexibility, and customized deal structures that traditional banks can no longer deliver.
According to Preqin, global private real estate debt funds have raised more than $80 billion year-to-date, with the U.S. accounting for the majority of inflows. From Miami to Los Angeles to New York, developers are tapping private capital to fund ground-up construction, transitional assets, and luxury spec homes that often fall outside the bounds of conventional underwriting.
“Private credit is no longer an alternative — it’s essential,” said one Miami-based lender. Nowhere is this transformation more visible than in South Florida, where deal velocity, asset complexity, and borrower sophistication are rewriting the rules of real estate finance.
Zack Simkins
Vaster, a private lender active across the region, reports that over half its current portfolio is tied to high-end speculative home construction — a segment banks increasingly avoid due to large loan sizes, aggressive timelines, and complex ownership structures.
“For banks, a $10 million-plus residential loan with layered entities and bespoke design plans is a red flag,” said Zack Simkins, Managing Director of Vaster. “For us, it’s our bread and butter.”
Historically, South Florida’s private lending market served global borrowers — particularly foreign nationals excluded from traditional U.S. credit boxes. Today, more domestic high-net-worth individuals are turning to private credit not out of necessity, but preference.
“These are experienced borrowers who value discretion, control, and execution speed,” said Simkins. “They’re not just sourcing capital — they’re choosing partners who understand the asset and the vision behind it.”
Corey King
The shift is occurring in parallel with a surge in post-pandemic development across Miami-Dade, Broward, and Palm Beach counties, where population growth, wealth migration, and a booming construction pipeline are fueling demand for fast, flexible capital.
“Cash is still king, but fast private credit is the next best thing,” said commercial real estate consultant Corey King, Managing Member of Florida-based Right Turn Partners. “If you can’t close in 30 days or less, you’re out of the running.”
As banks retrench and institutional lending tightens, private lenders are no longer simply bridging the gap — they’re redrawing the boundaries of real estate finance in America. And for developers navigating one of the most competitive markets in a generation, private credit has become not just a solution, but a strategic advantage.
