Berkadia Arranges $118.6M Construction Loan for Gatsby Florida's The Palm in Palm Beach Gardens

PALM BEACH GARDENS, Fla. — Aug. 31, 2026 — Berkadia has arranged a $118.6 million construction loan on behalf of Gatsby Florida for The Palm, Palm Beach Gardens, an eight-story, approximately 200,000-square-foot Class A office and retail development in Palm Beach Gardens, Florida. Cirrus Real Estate Partners provided the three-year, floating-rate, interest-only facility, which will fund construction of what the developer describes as the only new Class A office and retail property under development north of West Palm Beach.

Deal Structure and Berkadia Team

The Berkadia team was led by Senior Managing Director Charles Foschini, Managing Director Scott Wadler and Associate Director Shannon Wilson. The loan carries a three-year term on a floating-rate, interest-only basis. At approximately 230,000 square feet of combined office and retail space, the financing implies a senior-debt basis of roughly $516 per square foot on the office and retail component alone, exclusive of parking and equity costs.

"The Palm represents the continued evolution of Palm Beach Gardens as a premier corporate destination," Foschini said. "As financial services firms, family offices and other sophisticated businesses continue expanding into Palm Beach County, demand is extending beyond downtown West Palm Beach into nearby submarkets that offer an exceptional quality of life while remaining highly connected. New institutional-quality office development remains extremely limited, and Gatsby Florida's proven success with DiVosta Towers gave lenders confidence in both the sponsorship and the long-term fundamentals supporting this project."

Scott Wadler noted that lender appetite for office construction remains selective but active in markets with the right fundamentals. "While many office markets across the country continue to face headwinds, Florida remains a notable exception," Wadler said. "Lenders are highly disciplined today, but they continue to pursue well-conceived office projects in markets supported by strong population growth, corporate relocations and limited new supply. Palm Beach County exemplifies those fundamentals, and Gatsby Florida's proven execution gave lenders the confidence to finance one of the region's next generation of trophy office developments."

Project Specifications and Location

Located at 11200 RCA Center Drive within the PGA Station mixed-use neighborhood, The Palm, Palm Beach Gardens will rise eight stories and deliver approximately 200,000 square feet of Class A office space alongside roughly 30,000 square feet of ground-floor retail and restaurant space. Office floors are designed with 25,000-square-foot floor plates, 10-foot floor-to-ceiling glass, hurricane-impact glazing and full-building generator backup. The development will also include an 838-space structured parking garage with EV charging stations, a rooftop terrace, conference facilities and a fitness center.

PGA Station, the broader mixed-use district surrounding the project, encompasses 1,200 newly developed apartments and is slated to include a future Tri-Rail and Brightline commuter rail stop for Palm Beach Gardens. The site sits along PGA Boulevard with immediate access to Interstate 95, providing proximity to Palm Beach International Airport and more than 2.5 million square feet of surrounding retail, including The Gardens Mall and Downtown at the Gardens.

Construction is scheduled to begin in August 2026, with delivery targeted for 2028.

Gatsby Florida's Track Record in the PGA Corridor

The Palm, Palm Beach Gardens will be the second trophy office asset in Gatsby Florida's portfolio along the PGA corridor, joining DiVosta Towers at 3825 and 3835 PGA Boulevard — a fully leased, approximately 220,000-square-foot Class A office campus delivered in 2020. Berkadia previously arranged a $90 million refinancing for DiVosta Towers in 2022, followed by a $100.4 million refinancing in which Cirrus Real Estate Partners again served as lender on a three-year, floating-rate, interest-only structure. Tenants at DiVosta Towers include J.P. Morgan, Wealthspire Advisors and Virtu Financial, among other financial services firms.

The repeat engagement of Cirrus Real Estate Partners and the same Berkadia team across both DiVosta Towers and The Palm underscores a continuity of sponsor, lender and intermediary relationships in the submarket.

"This development represents the next frontier in Gatsby Florida's evolution, which began with the development of 800 Brickell," said Isaac Shalom, Vice President of Gatsby Florida. "The Palm, Palm Beach Gardens sets a new standard for office buildings in South Florida. By developing a high-quality asset in this strategic location, with convenient access to I-95 and Alternate A1A, we're giving users an accessible workplace without sacrificing quality. We've had great success with leasing thus far, and we're looking forward to welcoming more tenants to the building."

Babak Ebrahimzadeh, President of Gatsby Florida, said the project is already generating tenant interest. "We've already seen strong leasing momentum from some of the country's top firms, and we expect that to continue as we deliver the building over the next 24 months," Ebrahimzadeh said.

Palm Beach County Office Market Context

The financing arrives against a backdrop of tightening office fundamentals in Palm Beach County. Direct availability in the county dropped to 13.1% in the second quarter of 2026 — its lowest level in nearly 20 years — declining 140 basis points quarter-over-quarter and 380 basis points year-over-year. Overall vacancy fell 60 basis points quarter-over-quarter to 13.7%, well below the 20-year average of 16.6%. The county's office construction pipeline stands at approximately 2.0 million square feet, representing 7.4% of total inventory, and was unchanged from the prior quarter, pointing to muted new supply despite tightening conditions.

The PGA corridor specifically has attracted a concentration of financial services tenants relocating or expanding from South Florida's urban cores. Darryl Kaplan of Darryl R. Kaplan Company, who oversees leasing at Gatsby Florida, characterized the submarket's appeal. "Palm Beach Gardens is an exceptional live-work-play market which has attracted best-in-class tenants, and The Palm, Palm Beach Gardens will add to that résumé as the only new Class A property in the PGA corridor," Kaplan said. "It will provide an elegant working environment that does not exist today in the area."

Jon Blunk, president of TCRE, which is handling leasing for The Palm, echoed that assessment. "Palm Beach Gardens continues to be one of the strongest office markets in South Florida," Blunk said. "The PGA Boulevard corridor has a deep executive base, strong demographics and an established roster of high-quality companies, with limited new Class A office supply. The Palm will build on the strength of that market and deliver a new level of office product along the PGA corridor."