Cirrus Real Estate Partners Supplies $100M Refi on Palm Beach Gardens Office Complex

Miami developer Gatsby Florida has sealed a $100.4 million loan to refinance Divosta Towers, a Palm Beach Gardens office complex, four years after landing a $90 million recapitalization for the 217,208-square-foot asset, Commercial Observer has learned. 

Cirrus Real Estate Partners provided the three-year, floating-rate, interest-only loan on the fully leased 2020-built property comprising two 11-story buildings. 

Berkadia negotiated the debt with a team consisting of Charles Foschini, Scott Wadler and Shannon Wilson out of the brokerage’s Miami office. 

“In today’s lending environment, office is the most scrutinized asset class, and refinancing even high-quality properties has become increasingly selective,” Foschini, senior managing director at Berkadia, said in a statement. “With full occupancy, institutional-caliber tenancy, and a location where new supply is effectively constrained, this was exactly the type of asset lenders are still willing to back.”

Wadler added that Palm Beach Gardens has “emerged as one of the strongest office submarkets in the country” aided by “strong in-migration and massive corporate investments” in the West Palm Beach area. Palm Beach Gardens’s office rents are up more than 90 percent over the past decade, according to Wadler.

Located at 3825 and 3835 PGA Boulevard, DiVosta Towers was the first new office development delivered in the Palm Beach Gardens submarket in more than a decade. Anchor tenants include J.P. Morgan Chase, Wealthspire Advisors and Virtu Financial.

“Since taking ownership of the properties in 2020 and completing the full lease-up and construction of the towers, we have been able to attract, and continue to attract, some of the best global firms to our property,” Isaac Ohebshalom, vice president at Gatsby Florida, said in a statement. 

Cirrus Real Estate Partners did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.