Gatsby Florida Lands $119M Loan to Build Spec Palm Beach Gardens Office

Development and investment firm Gatsby Florida has secured a $118.6 million loan from Cirrus Real Estate Partners to build a speculative luxury office complex in Palm Beach Gardens, Fla., Commercial Observer has learned. 

Called The Palm, the eight-story development will feature about 200,000 square feet of Class A office space as well as 30,000 square feet of ground-floor retail space and an 838-space parking garage. The complex at 11200 RCA Center Drive will rise adjacent State Road 811, between Interstate 95 and the Legacy Place open-air mall. 

Berkadia’s Charles Foschini, Scott Wadler and Shannon Wilson brokered the three-year, floating-rate, interest-only debt. Construction will start this month and is scheduled to be complete in 2028. The developer purchased the 5-acre parcel for $17.5 million in 2022, according to property records.

So far, The Palm has no tenants signed up. Gatsby Florida is banking on office demand migrating north from West Palm Beach as high-profile companies open outposts there, thanks in large part to the development spree and lobbying of billionaire developer Stephen Ross.  

“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,” Foschini said in a statement. “New institutional-quality office development remains extremely limited.”

Launched by Nader Shalom and Babak Ebrahimzadeh in 2019, Gatsby Florida specializes in South Florida offices. That same year, it bought the 15-story 800 Brickell tower for $125.5 million. 

In 2020, it purchased the Di Vosta Towers in Palm Beach Gardens for $80 million. In June, Cirrus Real Estate Partners provided a $100.4 million loan to refinance the 220,000-square-foot property. 

Julia Echikson can be reached at jechikson@commercialobserver.com.