Gatsby Florida has secured a $118.6 million construction loan for a 200,000-square-foot speculative office and retail project in Palm Beach Gardens. The financing advances a major development at PGA Station, where demand for newer office space, shopping and mixed-use amenities is helping reshape the area northwest of West Palm Beach.
Key takeaways
- Cirrus Real Estate Partners provided the three-year construction loan.
- The Palm will include 170,000 square feet of office space and 30,000 square feet of retail and restaurant space.
- Plans call for a parking garage, rooftop terrace, conference facilities and fitness center.
- The project is located near the Gardens Mall, Downtown Palm Beach Gardens and Gatsby’s DiVosta Towers.
Financing supports speculative development
The Miami-based developer is planning the project at 11200 RCA Center Drive. The three-year loan was negotiated by Berkadia executives Charles Foschini and Scott Wadler on Gatsby Florida’s behalf, providing capital for construction of the project, which was previously known as The Modern.
Gatsby Florida is led by Nader Shalom and co-founder Babak Ebrahimzadeh. An affiliated company acquired the development site for $17.5 million in 2022, according to property records.
The Palm targets modern office demand
Renamed The Palm, the development is designed to combine large-scale office space with services and amenities intended to appeal to companies seeking newer, higher-quality buildings. The planned ground-floor retail and restaurant component will add activity beyond traditional business hours.
The project also is expected to benefit from its proximity to the Gardens Mall and Downtown Palm Beach Gardens. Its amenities will include a rooftop terrace, conference facilities, a fitness center and structured parking.
Gatsby expands its Palm Beach Gardens footprint
The development will sit next to the DiVosta Towers, two 11-story office buildings Gatsby acquired from the DiVosta family for $80 million in 2020. The towers are fully leased to tenants including JPMorgan, Wealthspire Advisors and Virtu Financial.
Berkadia also refinanced the existing towers, extending its role in Gatsby’s Palm Beach Gardens portfolio. The new project gives the developer an opportunity to add speculative office inventory in a market where available modern space is relatively limited.
PGA Station adds mixed-use momentum
The Palm is planned within PGA Station, a larger mixed-use neighborhood expected to include roughly 1,200 apartments and future train stations. The community is attracting investment across multiple property types, including a 302-unit apartment project for which Abacus Capital secured a $77.5 million construction loan last year.
Together, the residential, office, retail and transportation plans could create a more connected business district in Palm Beach Gardens and support demand for nearby services.
South Florida office market remains resilient
The financing comes as South Florida continues to rank among the country’s strongest office markets. In the West Palm Beach-Boca Raton area, asking rents rose 21 percent year over year, according to Miami Realtors data cited in the report.
The area also recorded the lowest vacancy rate among the markets evaluated, below both Miami and Manhattan. That performance is encouraging developers to pursue new construction despite broader uncertainty in the national office sector.
- Gatsby Florida Nabs Loan for Palm Beach Gardens Spec Office, The Real Deal.