Sundy Village Reaches 97% Leased After $223M J.P. Morgan Refinancing

Q: What is Sundy Village in Delray Beach?

Sundy Village is a seven-acre mixed-use campus at 22 West Atlantic Avenue in downtown Delray Beach, combining Class A+ office space, retail, and dining with restored historic buildings. Developed by Pebb Capital, it is about 97% pre-leased, and its first phase was delivered in 2025.

Q: What is the $223 million Sundy Village refinancing?

It is a new loan from J.P. Morgan and Hudson Bay Capital that replaces the project's original $173 million construction loan. J.P. Morgan increased its commitment while Monroe Capital exited, and the refinancing signals that Sundy Village has moved from a construction project to a stabilized, income-producing asset.

Q: Why is Sundy Village 97% leased when other offices are empty?

Sundy Village is high-end, Class A+ office space in a walkable downtown, with amenities like private balconies and a private elevator from the garage to each office. That kind of premium product in a desirable location draws established businesses, so it leases quickly while older, generic office space struggles.

Q: Who developed Sundy Village?

Pebb Capital, a Boca Raton-based real estate and private equity firm led by co-founder Todd Rosenberg, developed the site and bought the land for $40 million in 2019. Gensler and RLC Architects designed the campus, with Bluewater Builders as general contractor.

Q: What is being built in Phase Two of Sundy Village?

Phase Two, under construction, adds a 79,141-square-foot standalone office building leased to Boca Raton-based DigitalBridge, along with a 165-space parking garage and ground-floor retail. At full completion, the campus will total roughly 253,000 square feet of office, retail, and dining.

Published: September 22nd, 2026

Sundy Village just landed a $223 million refinancing as it neared full occupancy. The seven-acre downtown campus has moved from a risky construction project to a stabilized asset.

Key Takeaways

Pebb Capital secured a $223 million refinancing for Sundy Village in downtown Delray Beach, replacing its $173 million construction loan.
J.P. Morgan increased its commitment while Monroe Capital exited, a vote of confidence in a campus that is now 97% pre-leased.
The deal marks Sundy Village's shift from construction project to stabilized asset, and stands out in an office market full of distress.

While much of the commercial real estate news lately has been about empty offices and distress, here is a project that worked. According to Florida YIMBY, Pebb Capital just secured a $223 million refinancing for Sundy Village, its seven-acre office and dining campus in downtown Delray Beach, as the project reached 97% leased. J.P. Morgan, which helped fund construction, is increasing its bet rather than stepping back.

What did J.P. Morgan just finance?

Pebb Capital secured $223 million to refinance Sundy Village, at 22 West Atlantic Avenue, with the loan provided by J.P. Morgan and Hudson Bay Capital. It replaces the $173 million construction loan Pebb took in 2023, from Monroe Capital and J.P. Morgan, and adds capital for tenant improvements. The telling detail is who stayed and who left: J.P. Morgan, which helped fund construction, is increasing its commitment, while Monroe Capital is exiting now that construction is complete. Walker & Dunlop arranged the deal.

A refinancing at this scale, $223 million replacing $173 million while the campus is 97% pre-leased, marks Sundy Village's transition from a development risk to a stabilized asset. That is the stage where the risk profile drops and the value rises, which is exactly why a lender doubles down rather than walks away.

Why did this office campus lease up when others sit empty?

In a market where many offices sit empty, and where we recently covered a Broward office building that sold at a $17 million loss, Sundy Village leased to 97%. The difference is the product. Sundy Village is a Class A+ office in a walkable downtown, with touches you would expect in a luxury condo rather than an office park: private balconies on every floor and a private elevator that carries tenants from their parking space straight to their office, without crossing common areas.

As Larry Mastropieri explained on the Discover South Florida Podcast, top-tier office space in a desirable downtown draws established businesses that want that experience, which is why it fills up while generic, cheaper space stays vacant. In other words, location and quality drive office leasing now, more than price alone.

What is Sundy Village, exactly?

The campus pairs new construction with Delray Beach history. Phase One, delivered in 2025, brought 100,000 square feet of Class A+ office, 30,000 square feet of retail and dining, and 268 below-grade parking spaces to the seven-acre site. Its anchor tenant is Vertical Bridge, the largest private cell-tower operator in the country, alongside Industrious coworking and restaurants like Barcelona Wine Bar, Maman, and Van Leeuwen. Phase Two, under construction, adds a 79,141-square-foot office building leased to Boca Raton-based DigitalBridge, plus a parking garage and ground-floor retail, bringing the campus to roughly 253,000 square feet at completion.

History ties it all together. Several restored Swinton Avenue cottages and the 1902 Sundy House, one of Delray's oldest buildings and listed on the National Register of Historic Places, are woven into the campus as dining and gathering spots. Pebb Capital, led by Boca Raton's Todd Rosenberg, bought the land for $40 million in 2019, and Gensler and RLC Architects designed it.

Thinking about buying, renting, or investing in downtown Delray Beach? Knowing which projects are reshaping the corridor helps you plan. Talk to a real estate agent in Delray Beach who tracks new development. Reach out to The Mastropieri Group, Realtors® or call (561) 287-7000.

How does it fit downtown Delray's boom?

Sundy Village is the anchor, but it is far from the only project reshaping downtown Delray Beach. The area around Atlantic Avenue is in its most active development cycle in decades. Atlantic Crossing, a completed mixed-use campus with office, retail, and residential, proved downtown Delray could support institutional-grade development. Now Pierre Delray II is adding a Class A office and retail building on one of Atlantic Avenue's last surface parking lots, an office-to-condo conversion is bringing 26 luxury units nearby, and projects like Onix Residences and Magnolia Place are adding high-end housing.

What makes Sundy Village especially notable is where it sits. As Larry put it: "The project is west of Swinton, so that's one big deal. Historically, east of Swinton is where you've seen all the action and where you wanted to be. It just means Delray is expanding, and it's getting better, and more and more stuff is happening around." A major campus succeeding west of Swinton suggests Delray's core is growing, and the neighborhoods just west of it may see real upside over time.

Watch More on This Topic: Watch this segment | Full Episode | Last week's recap

Frequently Asked Questions

What is Sundy Village in Delray Beach?

Sundy Village is a seven-acre mixed-use campus at 22 West Atlantic Avenue in downtown Delray Beach, combining Class A+ office space, retail, and dining with restored historic buildings. Developed by Pebb Capital, it is about 97% pre-leased, and its first phase was delivered in 2025.

What is the $223 million Sundy Village refinancing?

It is a new loan from J.P. Morgan and Hudson Bay Capital that replaces the project's original $173 million construction loan. J.P. Morgan increased its commitment while Monroe Capital exited, and the refinancing signals that Sundy Village has moved from a construction project to a stabilized, income-producing asset.

Why is Sundy Village 97% leased when other offices are empty?

Sundy Village is high-end, Class A+ office space in a walkable downtown, with amenities like private balconies and a private elevator from the garage to each office. That kind of premium product in a desirable location draws established businesses, so it leases quickly while older, generic office space struggles.

Who developed Sundy Village?

Pebb Capital, a Boca Raton-based real estate and private equity firm led by co-founder Todd Rosenberg, developed the site and bought the land for $40 million in 2019. Gensler and RLC Architects designed the campus, with Bluewater Builders as general contractor.

What is being built in Phase Two of Sundy Village?

Phase Two, under construction, adds a 79,141-square-foot standalone office building leased to Boca Raton-based DigitalBridge, along with a 165-space parking garage and ground-floor retail. At full completion, the campus will total roughly 253,000 square feet of office, retail, and dining.

Local help for Delray Beach buyers, sellers, and investors

Whether you are buying downtown, leasing space, or weighing an investment as Delray Beach keeps growing, it helps to work with a team that closely follows the local market. Reach out to The Mastropieri Group, Realtors® in Delray Beach, or call (561) 287-7000 for practical, hands-on guidance across South Florida.