Gatsby Florida Inks $118.6M Construction Loan for Palm Beach Gardens Offices, Retail
Why this matters
Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- Disclosed office deal value tracked in September 2026: $458.6M across 2 reported transactions. All Office coverage →
Computed from Real Estate Trail’s own tracked coverage
Berkadia arranged a $118.6 million loan on behalf of Gatsby Florida for the construction of The Palm, Palm Beach Gardens. Upon completion in 2028, the eight-story, 200,000-square-foot development will deliver office a…
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