Pebb Capital Secures $223 Million Refinancing for Sundy Village

• Pebb Capital secured a $223 million refinancing for Sundy Village, a seven-acre mixed-use campus in downtown Delray Beach.
• J.P. Morgan and Hudson Bay Capital provided the financing, replacing a previous $173 million construction loan and adding capital for tenant improvements.
• The project is 97% pre-leased, with Phase One delivering approximately 100,000 square feet of Class A+ office space and 30,000 square feet of retail and dining.
• The next phase includes a 79,141-square-foot office building for DigitalBridge and a separate parking garage with ground-floor retail.

What The $223 Million Refinancing Covers

Pebb Capital has refinanced Sundy Village at 22 West Atlantic Avenue in downtown Delray Beach, giving the seven-acre mixed-use campus a new capital structure as leasing and tenant buildouts continue. The $223 million financing replaces the project's existing construction debt and provides additional capital for tenant improvements. J.P. Morgan, which participated in the original construction financing with Monroe Capital, is increasing its commitment, while Monroe Capital is exiting following the construction phase. Walker & Dunlop's Institutional Advisory Practice arranged the refinancing. The deal is particularly notable because Sundy Village is already 97% pre-leased, giving lenders visibility into future occupancy and cash flow.

What Sundy Village Includes For Tenants

Phase One delivered roughly 100,000 square feet of Class A+ office space, 30,000 square feet of retail and dining space and 268 below-grade parking spaces. The campus combines new construction with restored historic properties and landscaped pedestrian areas. The development sits at the intersection of Atlantic Avenue and Swinton Avenue, positioning it as a gateway into downtown Delray Beach. The project's official website describes the campus as a combination of office, retail and restaurant space designed around outdoor dining, landscaped walkways and historic architecture. Historic properties are also part of the project, including Sundy House, which is listed on the National Register of Historic Places.

What The Leasing Activity Means For The Project

Sundy Village has attracted a mix of office, restaurant and retail tenants, including Vertical Bridge, Industrious, Barcelona Wine Bar, Van Leeuwen Ice Cream, Double Knot, Drinking Pig BBQ, Maman, Dragonfly MRI, JTC and Fairstead Development. The 97% pre-leasing level is important for the refinancing because it shows substantial tenant commitments before the entire campus is fully operational. For landlords, it also demonstrates continued demand for highly amenitized office and mixed-use environments in established South Florida downtown locations.

What The Next Phase Adds To Downtown Delray Beach

The next phase will expand the campus with a 79,141-square-foot standalone office building at 100 SE First Avenue for DigitalBridge. A separate project at 48 SE First Avenue will add a 165-space parking garage with approximately 3,400 square feet of ground-floor retail. An updated completion schedule for these components has not been announced. The additional office space is significant for a downtown market where walkability, dining and amenities are increasingly important to office tenants. Sundy Village is also less than a mile from Interstate 95, giving the campus regional accessibility while maintaining a downtown location.

What The Refinance Says About South Florida CRE

The refinancing is a strong signal for well-leased commercial assets in South Florida. Rather than simply extending construction debt, Pebb Capital is moving Sundy Village toward its next phase with institutional financing and additional capital for tenant improvements. For CRE investors and landlords, the deal highlights the value of high-quality office, retail and dining projects with strong pre-leasing, particularly in walkable South Florida submarkets. Sundy Village's combination of new construction, historic preservation and tenant amenities gives the seven-acre campus a differentiated position in downtown Delray Beach.