South Florida Project Secures $223M Refi
J.P. Morgan is increasing its share of the development's capital stack.
Pebb Capital has secured a $223 million refinancing for Sundy Village, a 7-acre mixed-use campus in downtown Delray Beach, Fla. J.P. Morgan and Hudson Bay Capital provided the financing, which replaces the project’s existing construction loan and provides additional funds for tenant improvements.
J.P. Morgan provided the original construction financing along with Monroe Capital and through the refinancing has remained in the capital stack, increasing its commitment. Monroe Capital, by contrast, is concluding its participation in the deal.
Sundy Village includes office, retail and dining within a walkable area near Swinton Avenue, a major north-south thoroughfare between Interstate 95 and U.S. Route 1. The campus combines new construction with restored historic homes and also features landscaped courtyards, indoor-outdoor gathering spaces and shaded pathways.
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Phase One delivered 100,000 square feet of office space, 30,000 square feet of retail and dining, and 268 below-grade parking spaces. The next phase will include a 79,141-square-foot standalone office building at 100 SE First Ave. for DigitalBridge, along with a 165-space parking garage at 48 SE First Ave. with about 3,400 square feet of ground-floor retail.
Gensler and RLC Architects designed Sundy Village to integrate new development with Delray Beach’s historic character. A number of restored homes throughout the campus are listed on the National Register of Historic Places.
The development was 97 percent preleased, according to Pebb Capital. Tenants include Vertical Bridge, Industrious, Barcelona Wine Bar, Van Leeuwen Ice Cream, Double Knot, Drinking Pig BBQ, Maman, Dragonfly MRI, JTC, and Fairstead Development.
Walker & Dunlop’s Institutional Advisory Practice, led by Senior Managing Directors and Co-Heads of Institutional Advisory Sean Reimer, Aaron Appel, Jonathan Schwartz, Keith Kurland, and Adam Schwartz, alongside Senior Managing Director Dustin Stolly, facilitated the deal.
Mixed-use a hit in South Florida
South Florida continues to see new development of and investment in mixed-use properties. Earlier this month, Terra Group secured a $245 million loan for a recently completed first phase of Upland Park, the developer’s $1 billion project that also includes residential, retail, commercial and hospitality assets on a 47-acre site. The first phase includes a 578-unit multifamily property in Miami.
And in July, an $8.1 billion mixed-use plan by Blake Investment Partners and Related Group to redevelop 58 acres in downtown St. Petersburg, Fla., was selected by the city to move forward. Dubbed The Burg Bid, the team’s proposal includes a mix of housing, hotels, office, retail, a park, museums and more, that would be built over approximately 15 to 20 years in three phases.
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