# Gatsby Florida Lands $119M Loan to Build Spec Palm Beach Gardens Office
Gatsby Florida has closed a $118.6 million construction loan from Cirrus Real Estate Partners to build a speculative Class A office tower in Palm Beach Gardens. The eight-story project, called The Palm, will deliver approximately 200,000 square feet of premium office space plus 30,000 square feet of retail and amenities across its footprint.
This loan represents a significant bet on South Florida's office market recovery. Gatsby Florida is moving forward with ground-up construction despite persistent headwinds in commercial real estate. The transaction signals that select lenders remain willing to fund trophy-caliber office product in affluent submarkets where demand for upscale space persists.
The Palm targets tenants seeking modern, amenity-rich offices in one of South Florida's strongest employment corridors. Palm Beach Gardens hosts headquarters for multiple Fortune 500 companies, healthcare systems, and professional services firms. The area's demographic profile, with high household incomes and strong corporate presence, supports demand for Class A space at premium rents.
Cirrus Real Estate Partners' commitment underscores investor confidence in Gatsby Florida's development capabilities and the Palm Beach Gardens submarket fundamentals. Cirrus typically structures loans for institutional-grade assets with experienced sponsors. The lender's involvement validates the project's underwriting and risk profile.
For tenants, The Palm's delivery will add modern supply in a market where newer buildings command rent premiums over aging stock. Palm Beach Gardens' office vacancy has tightened in recent years as companies upgraded to contemporary space with high ceilings, collaborative layouts, and technology infrastructure. Rents for Class A space in the submarket currently range from the low-to-mid $30s per square foot on a triple-net basis, depending on finishes and tenant profile.
For landlords operating older Palm Beach Gardens office buildings, The Palm poses competitive pressure. Properties lacking recent capital investment or high-end finishes will face headwinds in lease renewals. Owners may need to fund renovations to retain tenants or accept below-market renewal rates. Secondary and tertiary office space will suffer most as demand shifts to the newest supply.
For investors, the 200,000-square-foot delivery adds inventory risk to the submarket. However, Gatsby Florida's speculative approach reflects calculated demand: the firm is not pre-leasing before construction, indicating confidence in strong tenant interest upon completion. This differs from other markets where speculative office development has stalled or faced extended lease-up periods.
The retail component positions The Palm as a mixed-use destination beyond traditional office. Street-level shops and restaurants activate the ground floor and drive foot traffic, enhancing tenant experience and justifying premium rents above base office rates.
Timeline for The Palm's opening remains undisclosed, though construction financing typically implies 24-to-36-month construction schedules for this building class. Completion likely falls in 2026 or 2027.
The $118.6 million loan size reflects current debt capital markets conditions where interest rates and lender spreads have compressed from 2023 peaks. Gatsby Florida likely secured favorable pricing relative to previous lending environments, benefiting from Cirrus Real Estate Partners' appetite for sponsor relationships and trophy assets.