Pebb Capital has secured a $223 million refinancing for Sundy Village, its seven-acre mixed-use campus in Downtown Delray Beach, replacing the project's existing construction loan. The new capital, provided by J.P. Morgan and Hudson Bay Capital, also adds funding for tenant improvements across a development that is 97% pre-leased. The transaction matters because it converts construction-period debt into longer-term financing at a moment when the project is nearly fully committed, reducing lease-up risk and signaling lender confidence in a South Florida mixed-use asset that blends office, retail, dining, and parking.
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. The refinancing covers a campus that has already delivered Phase One, which includes 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.
The evidence for this transaction comes from a single full-text report published by Connect CRE on September 9, 2026. The source is a secondary trade publication rather than a primary lender or borrower statement, and the dossier does not include loan term sheets, interest rates, maturity dates, or covenants. The reported facts are limited to the refinancing amount, the lenders, the arranging team, the project's pre-leasing level, and the physical components of the development. Sundy Village was designed by Gensler and RLC Architects, according to the same report. No quotes from Pebb Capital, J.P. Morgan, Hudson Bay Capital, or Walker & Dunlop are included in the available text.
For the South Florida commercial real estate market, the deal is a data point suggesting that institutional lenders remain willing to refinance well-leased mixed-use projects in Downtown Delray Beach. The presence of a named anchor tenant, DigitalBridge, in the next phase of construction provides a concrete demand signal, though the dossier does not state the lease terms or the tenant's occupancy timeline. The 97% pre-leased figure is the strongest underwriting fact available, but it is not broken down by asset type, so it is unclear whether office, retail, or parking drives the occupancy level. The refinancing also provides additional capital for tenant improvements, which implies that some committed tenants have not yet taken occupancy and that the borrower is funding build-out costs through the new debt.
Several limitations apply to this analysis. The dossier contains no information on the prior construction loan's size, maturity, or lender, so the refinancing cannot be compared against the original capital stack. There is no valuation, debt yield, loan-to-value, or debt service coverage data. The source does not state whether the refinancing includes a future funding facility for the next phase or whether the entire $223 million is current funding. Market context such as Delray Beach vacancy rates, comparable refinancings, or cap rates is absent. What to watch next includes any confirmation from the borrower or lenders, the completion and lease commencement of the DigitalBridge building, and whether the tenant improvement capital is fully deployed without additional equity calls.