Pebb Capital has secured $223 million in refinancing for Sundy Village, its office-and-retail development near downtown Delray Beach. The new financing replaces a $173 million construction loan issued in 2023 and supports the project’s completed first phase as well as additional office, retail and parking planned for the next stage.
Key takeaways
- JPMorgan Chase and Hudson Bay Capital provided the new financing.
- Walker & Dunlop arranged the refinancing.
- Sundy Village’s first phase includes 100,000 square feet of offices, 30,000 square feet of retail and 268 parking spaces.
- The property is 97 percent pre-leased.
- A second phase will add a DigitalBridge-leased office building, retail and parking.
Refinancing replaces construction debt
The new loan replaces the previous $173 million construction facility provided by JPMorgan Chase and Monroe Capital. JPMorgan remains involved in the project, while Monroe is stepping away. Walker & Dunlop arranged the refinancing for Boca Raton-based Pebb Capital.
The larger loan gives Pebb financing flexibility as it advances construction at Sundy Village, a major mixed-use addition to Delray Beach’s downtown commercial district.
First phase combines offices, retail and parking
The first phase occupies seven acres at 22 West Atlantic Avenue, just off Atlantic Avenue. Construction began in 2023 and was completed in 2025. The development includes:
- 100,000 square feet of office space;
- 30,000 square feet of retail space; and
- 268 parking spaces.
Office tenants include Fairstead Development, Industrious and Vertical Bridge. Retail tenants include Van Leeuwen Ice Cream, Maman, Barcelona Wine Bar and Double Knot. Barcelona Wine Bar and Double Knot opened in January and June, respectively.
Only two office spaces and one retail space remain available, according to the project’s website. CBRE is handling leasing for the development.
Expansion will add DigitalBridge office
Pebb’s next construction phase will bring a 79,141-square-foot office building to 100 Southeast First Avenue. The building is leased to DigitalBridge, an investment company based in Boca Raton.
The plans also call for a 165-space parking garage and 3,400 square feet of retail at 48 Southeast First Avenue. Together, the additions will expand Sundy Village’s workplace and hospitality offerings while increasing its parking capacity.
Historic elements shape the design
Sundy Village has been in development since at least 2019, when Pebb’s Todd Rosenberg acquired the land for $40 million. Gensler and RLC Architects designed the project, incorporating historic Delray Beach homes into the new construction.
The development reflects the city’s effort to add modern office and retail space while preserving elements of its established architectural character.
Pebb continues South Florida expansion
The refinancing comes as Pebb expands its regional portfolio. In July, the firm acquired a Miami Beach office building for $70 million. It also partnered with Wharton Properties Company’s Jeff Sutton and Lane Capital Partners on a $72.5 million mixed-use acquisition in Miami’s Design District.
The transactions underscore Pebb’s continued focus on office and mixed-use properties across South Florida, where demand for well-located, amenity-rich commercial projects remains a central investment theme.
- Pebb Capital’s $223M Refi for Delray Beach’s Sundy Village, The Real Deal.