BH Group, PEBB Enterprises Secure $89.9 Million Financing For Former Office Depot HQ Redevelopment

BH Group and PEBB Enterprises closed an $89.88 million financing transaction for The Eclipse, a mixed-use redevelopment in Boca Raton, formerly known as the Office Depot headquarters.

The new loan, provided by City National Bank, with participant Abanca, represents an increase in loan proceeds from $47 million to $89.88 million.

The transaction closed on Nov. 24.

“We greatly appreciate the support of City National Bank and Abanca,” PEBB CEO Ian Weiner said. “This transaction enables us to advance our vision for The Eclipse. It also reflects the capital markets’ confidence in the strength of the BH Group and PEBB Enterprises partnership, as well as the strength of the Boca Raton real estate market.”

BH Group and PEBB are partnering on the office and retail components of The Eclipse. The companies are developing the residential component in partnership with Related Group.

PEBB Chief Investment Officer Eric Hochman noted that the new loan will fund ongoing Class A office tenant improvements and the upcoming construction of Equinox. Following the $50 million sale of the southern portion of the project site for the 500-unit residential component, BH and PEBB have stabilized more than 87% of the 400,000-plus square feet of office space.

“The Eclipse represents a transformational project for Boca Raton and a testament to what can be achieved through long-term vision and strong partnerships,” PEBB Chief Investment Officer Eric Hochman. “Despite national challenges in the office market, South Florida’s strength remains undeniable. We’re especially grateful for the partnership and confidence of City National Bank and Abanca as we begin the next phase.”

The project encompasses over 405,000 square feet of existing office space across two buildings, two ground-up retail and restaurant outparcel buildings totaling approximately 21,500 square feet, a nearly 37,000-square-foot Equinox gym and 500 multifamily units.

Notable office tenants include Atlantic | Pacific Companies, Kanner & Pintaluga, MN8 Energy and ODP Corp.

The 29-acre project site overlooks the Broken Sound Country Club’s golf course, offering an exceptional environment to live, work and dine.

“This continues to be a momentous year for our development, from obtaining final site plan approval from the City of Boca Raton to attracting major corporate office tenants and increasing our financing commitments,” BH Group’s Isaac Toledano said. “There is strong belief in our vision, and we are excited to keep the momentum going in the months ahead.”