Pebb Capital Lands $223M Refi on Sundy Village in Delray Beach

Pebb Capital has refinanced Sundy Village, its mixed-use office and retail complex in downtown Delray Beach, with a $223 million loan from J.P. Morgan and Hudson Bay Capital that replaces the project’s 2023 construction debt, according to The Real Deal.

Why it matters

A nine-figure refinancing on a ground-up mixed-use project is a vote of confidence in downtown Delray’s office and retail stock at a moment when construction lending has tightened almost everywhere else. Sundy Village sits at Atlantic Avenue and Swinton Avenue, the gateway into Delray’s downtown corridor, and Pebb has built it around six structures on the National Register of Historic Places rather than clearing the block. Palm Beach County Property Appraiser records confirm the underlying parcel, at 22 W. Atlantic Ave., is held by Sundy Village West LLC out of 7900 Glades Rd Ste 540 in Boca Raton, the same address as Pebb Capital’s headquarters, tying the entity behind the reported refinancing to the recorded property. If a Class A+ office project in a historic downtown can pull nine figures of permanent-style financing, that is a data point every Delray Beach and South Florida sponsor underwriting office space will look at.

The numbers

Pebb broke ground on Sundy Village’s first phase in 2023 with a $173 million construction loan from Monroe Capital and JPMorgan Chase. That phase, 100,000 square feet of Class A+ office and 30,000 square feet of retail and dining with 268 below-grade parking spaces on the 7-acre site, reached temporary certificate of occupancy in September 2025 at roughly 88 percent leased. The Real Deal reports the new $223 million loan, arranged by Walker & Dunlop, replaces that construction debt and funds tenant improvements as the project moves into a planned second phase: a standalone 79,141-square-foot office building at 100 SE First Ave. leased to DigitalBridge, plus a parking garage and retail at 48 SE First Ave. We could not independently verify the $223 million figure, the lenders, or a recording date against Palm Beach County Clerk mortgage records, which require a bot-verification step our tools do not complete; the loan amount and lender names here rest on trade-press reporting.

What’s next

Pebb’s next milestone is delivering Sundy Village’s second phase, the DigitalBridge-leased office building and adjoining parking garage, while leasing up the retail space still open in phase one. For South Florida developers watching the office market, the refinancing suggests lenders are still willing to underwrite large, phased mixed-use projects in walkable downtowns even as they pull back elsewhere, provided the first phase is built, leased, and delivering cash flow.