Pebb Capital Secures $173M Construction Loan For Delray Beach Development

Diversified, multi-strategy real estate and private equity investment firm Pebb Capital announced it has secured a $173 million construction loan from Monroe Capital & J.P. Morgan for Sundy Village, the transformative, c

Following its groundbreaking in early 2023 and with delivery anticipated for summer 2024, this announcement marks another milestone for what will be the most unique, fully-amenitized lifestyle destination in the Atlantic Avenue District.

Located at the corner of Atlantic Avenue and Swinton Avenue, at 22 W. Atlantic Avenue, the visionary project is the last remaining master-planned office development in the city. Sundy Village will be a campus delivering more than 28,000 square feet of experiential retail space and 180,000 square feet of ‘Class A’ offices, of which Pebb Capital has already successfully leased 141,400 square feet. With evident high demand, tenants include new-to-market brands, standout culinary establishments and corporate headquarter moves. The roster features Barcelona Wine Bar, a tapas bar shaped by Mediterranean, Spanish, and South American influences with nearly 400 wines; Vertical Bridge, the world’s first carbon-neutral tower company;  the famous Philadelphia concept, Double Knot, by chef and restauranteur Michael Schulson; and much more.

Sundy Village will offer a unique component that celebrates Delray Beach’s rich history, multiple structures listed on the National Register of Historic Places that will be preserved and restored for retail space. This includes Sundy House, one of the oldest houses in Delray Beach, in addition to The Rectory and Cathcart House.

“Our vision for Sundy Village is to push boundaries beyond current market offerings and drive a positive economic impact on Delray Beach now and for the future,” said Todd Rosenberg, founder and managing principal of Pebb Capital. “We appreciate the collaboration with Monroe Capital & J.P. Morgan and the advice of Ackman-Ziff, helping us close one of the few office construction loans in the country this year; the financing is a testament to the strength of this project and adds to our momentum toward delivering a placemaking project next year that will greatly serve Delray and the broader South Florida community.”

Sundy Village will unveil a business and lifestyle hub that seamlessly embraces a vibrant, modern environment with thoughtful touches of architecture that pay homage to Delray Beach’s heritage. Crafted by Gensler and RLC Architects, the development will offer patrons a design and layout reminiscent of a campus, featuring open-air courtyards and walkways, lush green spaces, as well as indoor and outdoor dining and seating areas.

With an overall project cost of $240 million, the firm’s proven track record and foresight to create a community-centric, high-caliber experience just a mile from Interstate 95 will result in an unparalleled destination for area residents and visitors.

Joe Freitas and John Criddle of CBRE oversee Sundy Village office leasing and Sara Wolfe of Vertical Real Estate handles retail leasing. Sundy Village construction commenced in February with Bluewater Builders as the general contractor.