At a glance
- Gatsby Florida has just placed that bet with a $118.6 million construction loan for The Palm, an eight-story office and retail project planned for 11200 RCA Center Drive in the PGA corridor of northern Palm Beach County.
- According to Connect CRE, construction is scheduled to begin soon, with completion set for 2028, and The Palm will become Gatsby Florida's second asset, joining DiVosta Towers, which is fully leased and recently refinanced.
- A three-year loan on that schedule points to a 2029 maturity, leaving a short window between completion and maturity on what PRED's prior coverage characterized as an unleased, spec 200,000-square-foot office tower.
Financing a spec office tower in 2026 is a clear bet that leases can be signed before the concrete cures. Gatsby Florida has just placed that bet with a $118.6 million construction loan for The Palm, an eight-story office and retail project planned for 11200 RCA Center Drive in the PGA corridor of northern Palm Beach County. Berkadia arranged the financing, a three-year, floating-rate, interest-only loan placed with Cirrus Real Estate Partners, as first reported by Connect CRE; Charles Foschini, Scott Wadler and Shannon Wilson led the Berkadia team.
According to Connect CRE, construction is scheduled to begin soon, with completion set for 2028, and The Palm will become Gatsby Florida's second asset, joining DiVosta Towers, which is fully leased and recently refinanced. The project plans more than 200,000 square feet of Class A office space, roughly 30,000 square feet of ground-floor retail and restaurant space, an 838-space parking garage with EV charging, a rooftop terrace, conference facilities and a fitness center.
A three-year loan on that schedule points to a 2029 maturity, leaving a short window between completion and maturity on what PRED's prior coverage characterized as an unleased, spec 200,000-square-foot office tower. Because the loan is interest-only and floating-rate, there is no amortization cushion; the maturity math makes this a race rather than a holding strategy, and when the maturity date arrives, the building's leasing progress will determine what refinancing looks like.
The amenity package — rooftop terrace, conference facilities, fitness center, EV-ready garage — is aimed at the tenant who can pay for Class A space, and the PGA corridor is a plausible place for that bet. The broader office market's commodity stack is still waiting for a clearing price; this loan is capital placed on the trophy side of that divide.
Reported by the Real estate debt desk from Connect CRE. Published . Corrections