The development and investment firm Gatsby Florida has secured an $118.6 million loan from Cirrus Real Estate Partners. The financing is for the construction of a speculative luxury office complex in Palm Beach Gardens, Florida, with the project name “The Palm.” This was learned by Commercial Observer.
The eight-storey “The Palm” project will comprise approximately 200,000 square feet of prime office space and 30,000 square feet of ground-floor retail space. The complex will be complemented by an 838-space car park. The facility is being built at 11200 RCA Center Drive, adjacent to State Road 811, between Interstate 95 and the open-air shopping centre Legacy Place.
The negotiation of the three-year, floating-rate, interest-only loan was handled by Charles Foschini, Scott Wadler, and Shannon Wilson of Berkadia. Construction is scheduled to commence this month, with completion expected in 2028. According to property records, the developer acquired the 5-acre site in 2022 for $17.5 million.
Market Strategy and Background
To date, no tenants have been signed for “The Palm.” Gatsby Florida is betting on office demand shifting north from West Palm Beach as high-profile companies establish satellite offices there. This is largely due to the intensive development activity and lobbying efforts of billionaire developer Stephen Ross.
Charles Foschini of Berkadia explained that as financial services firms, family offices, and other sophisticated companies continue their expansion into Palm Beach County, demand is extending beyond Downtown West Palm Beach to nearby submarkets that offer an exceptional quality of life. He added that the development of new, institutional-quality office space remains highly constrained.
Gatsby Florida Company History
Gatsby Florida, founded in 2019 by Nader Shalom and Babak Ebrahimzadeh, specialises in office properties in South Florida. In its founding year, the company acquired the 15-storey 800 Brickell Tower for $125.5 million. In 2020, it purchased the Di Vosta Towers in Palm Beach Gardens for $80 million. In June this year, Cirrus Real Estate Partners provided a $100.4 million loan to refinance the 220,000 square foot property.
