Pebb Capital scores $173M construction loan for mixed-use project in Delray Beach
Monroe Capital, J.P. Morgan provide financing amid year-end rush
Pebb Capital scored a $173 million construction loan for the mixed-use Sundy Village project in Delray Beach.
The firm is developing 180,000 square feet of offices and more than 28,000 square feet of retail on the southwest corner of West Atlantic and South Swinton avenues, according to a Pebb news release. Sundy Village will include the preservation and restoration of six historic homes, which are being repurposed as retail.
Chicago-based Monroe Capital and New York-based J.P.Morgan provided the financing.
Construction of Sundy Village started in February, and completion is expected in the summer, the release says.
Boca Raton-based Pebb has been planning the project since at least 2019 when the firm paid $40 million for the nearly 7-acre development site at 22 West Atlantic Avenue.
More than 141,000 square feet of space is pre-leased, according to the release. Communications infrastructure owner-operator Vertical Bridge took 38,500 square feet for its headquarters. Also, tapas restaurant Barcelona Wine Bar leased 4,900 square feet, and chef and restaurateur Michael Schulson’s Double Knot leased 8,800 square feet, according to an October news release from Pebb.
Sundy Village’s name is an homage to the Sundy House, a home completed on the development site in 1902, which served as the residence of Delray Beach’s first mayor, John Sundy. The building is listed in the U.S. National Register of Historic Places. In recent years, the Sundy House was an inn with a restaurant and garden, but it is now closed during the renovation.
Other landmark houses that will be preserved as part of the project include Cathcart House, built in 1902; and The Rectory, built in 1900, according to Sundy Village’s website.
Development in Delray Beach hasn’t been as robust as elsewhere in South Florida, though some developers are betting on the city. In October, 13th Floor Homes scored a $14.1 million construction loan for the 55-and-older rental townhouse complex Solera at Avalon Trails with 74 units at 14800 Cumberland Drive.
The Sundy House financing comes amid a year-end rush to close deals, as at least four South Florida projects scored construction loans this month.
Constellation Group and the Boschetti Group nabbed a $33 million loan for an eight-story building with 70,000 square feet of offices and additional retail at 4225 and 4311 Ponce de Leon Boulevard in Coral Gables. Pinnacle snagged a $41 million financing package for a 110-unit affordable housing complex for seniors at 8911 Miramar Parkway in Miramar.
Also this month, Fortune International Group and Oak Capital scored a $259 million construction loan for the planned two-tower, 205-unit Ritz-Carlton Residences, Pompano Beach. Development started this year at 1380 South Ocean Boulevard, and completion is expected in 2025.