Pebb Capital Secures $223 Million Refi For Sundy Village
Pebb Capital has secured a $223 million refinancing for Sundy Village, its seven-acre mixed-use campus in Downtown Delray Beach. Provided by J.P. Morgan and Hudson Bay Capital, the deal replaces the project’s existing construction loan while providing additional capital for tenant improvements across the 97% pre-leased development, marking Sundy Village’s transition from development to a stabilized asset.
J.P. Morgan, which provided the original construction financing alongside Monroe Capital, will remain in the capital stack and increase its commitment through the refinancing, while Monroe Capital will conclude its participation in the construction phase.
“Reaching this stage with nearly the entire campus leased demonstrates the strength of our vision at Sundy Village and the market’s response to it,” said Todd Rosenberg, Co-Founder and Managing Principal of Pebb Capital. “J.P. Morgan’s continued involvement, alongside Hudson Bay Capital, reinforces the asset’s long-term value as we continue to welcome tenants and bring the remaining spaces online.”
The financing was arranged by Walker & Dunlop’s Institutional Advisory Practice, led by Sean Reimer, Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, and Dustin Stolly. Aaron Casden served as the J.P. Morgan banker on the transaction.
Sundy Village brings together Class A+ office, retail and dining within a walkable destination surrounding Swinton Avenue. The campus combines new construction with restored historic homes, landscaped courtyards, shaded pathways and indoor-outdoor gathering spaces. Tenants include Vertical Bridge, Industrious, Barcelona Wine Bar, Van Leeuwen Ice Cream, Double Knot, Drinking Pig BBQ, Maman, Dragonfly MRI, JTC, and Fairstead Development, among others.
Phase One delivered 100,000 square feet of Class A+ office space, 30,000 square feet of retail and dining and 268 below-grade parking spaces. The next phase includes 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 approximately 3,400 square feet of ground-floor retail.
Located within a mile of Interstate 95 and near Atlantic Avenue, Sundy Village was designed by Gensler and RLC Architects to integrate new development with Delray Beach’s historic character. Several restored homes throughout the campus are listed on the National Register of Historic Places, preserving a connection to the city’s past while establishing a new community destination for gathering in Downtown Delray Beach.
Key Facts
- Property: Sundy Village
- Location: Downtown Delray Beach, Florida; Atlantic Avenue and Swinton Avenue
- Asset Type: Mixed-use office, retail and dining development
- Transaction Type: Refinancing
- Borrower/Developer: Pebb Capital
- Financing: $223 million refinancing
- Size: Approximately seven-acre mixed-use campus; Phase One includes 100,000 square feet of Class A office space and 30,000 square feet of retail and dining space
- Other Notable Details: Sundy Village incorporates new construction with restored historic structures, including buildings listed on the National Register of Historic Places. Pebb Capital previously secured a $173 million construction loan from Monroe Capital and JPMorgan Chase for the project in 2023.