TEMPE, ARIZ. — Ready Capital has closed a $36.8 million loan for the acquisition, renovation and stabilization of a 197-unit apartment property in Tempe. Upon acquisition, the undisclosed sponsor will implement a capital improvement plan to perform interior, exterior and common area upgrades. Ready Capital closed the non-recourse, interest-only, floating-rate loan, which features a 36-month term, two extension options and is inclusive of a facility to provide future funding for capital expenditures. The name of the property was not disclosed.
SCOTTSDALE, ARIZ. — Phoenix-based Bear Holdings Group has completed the sale of Gateway Scottsdale, a multifamily property located at 5245 E. Thomas Road in Scottsdale. Washington-based EZ Real Estate acquired the asset for $18.2 million, or $491 per square foot. Situated on 2.3 acres, the two-story, 37,115-square-foot Gateway Scottsdale features 71 units in a mix of studio, one- and two-bedroom layouts, averaging 523 square feet. Community amenities include a gated entry, swimming pool with sundeck, dog park, central courtyard area with a water feature, barbecue grills and picnic areas. Constructed in 1968, the property was fully remodeled in 2021. Chris Roach, Brad Cooke, Matt Roach and Cindy Cooke of Colliers in Arizona handled the off-market transaction.
CHANDLER, ARIZ. — Gantry has secured $15.5 million in financing for the acquisition of a three-story office building located at 3377 S. Price Road in Chandler. Workpliciti, a Chandler-based co-working space provider, anchors the 83,000-square-foot property. Craig Hoebing, Chad Metzger and Kevin Valenzuela of Gantry arranged the loan for the borrower, a private investor. Avana Cos. provided the five-year loan, which features a fixed rate and 25-year amortization schedule with no pre-payment penalties.
PHOENIX — CapRock Partners has broken ground on CapRock West 202 Logistics, a 3.4 million-square-foot speculative infill industrial property in central Phoenix. Grading has commenced for the first phase of the 183-acre development. The first phase will include the development of approximately 140 acres, delivering 2.5 million square feet of modern industrial warehouse space across five Class A buildings with clear heights ranging from 36 feet to 40 feet. Completion of the first phase is slated for first-quarter 2023. Phase II will include an additional three buildings totaling 827,330 square feet on 43 acres. Timing of the second phase’s start will be announced at a later date. Willmeng Construction is serving as general contractor, Carlile Coatsworth Architects as architect and Kimley Horn as engineer.
TUCSON, MESA AND PHOENIX, ARIZ. — Berkadia has secured a cross-collateralized pool financing on behalf of Arizona-based Christian Care Cos.’ Fellowship Square affordable senior living portfolio in Arizona. The 10-year, $92.8 million loan pool features a 65 percent loan-to-value ratio and three years of interest-only payments. Steve Ervin, Richard Price, Chris Cain and Rafael Nobo of Berkadia collaborated to secure the Freddie Mac permanent refinancing for the borrower. Nearly $89 million in high-interest-rate, first lien, tax-exempt bonds were redeemed with proceeds from the financing. The portfolio includes: Fellowship Square Tucson, located at 8111 E. Broadway Blvd. in Tucson, features 612 independent living and assisted living units in a mix of studio, one- and two-bedroom floor plans with a private balcony or patio. Community amenities include central dining, transportation services, recreational venues, swimming pools, a fitness center and laundry facilities. Twenty percent of the units must be rented to residents with incomes at or below 50 percent of the area median income (AMI) and 46 of the units are targeted to households at or below 80 percent AMI. The remainder of the units are rent restricted to 30 percent to 80 percent of AMI. Fellowship Square Historic Mesa, located at 35 …
SCOTTSDALE, ARIZ. — Sterling Real Estate Partners has purchased Suites on Scottsdale, a hotel property in Scottsdale, for an undisclosed price in an off-market transaction. The company plans to convert the 114-key extended-stay hotel, which was built in 1996, into an 85-unit apartment community. The conversion will consist of modifying the existing structure to conform to Scottsdale’s building codes, including new balconies for every unit, enhanced curb appeal and select rooms combined to improve unit mix. New resident amenities will include a large conference room with workspace-style offices; indoor/outdoor fitness center; yoga studio; movie theater; dog park with pet washing station; resort-style pool; automated package locker delivery system; and smart access system.
CHANDLER, ARIZ. — Lincoln Property Co. has purchased two buildings at AZ 202 Commerce Park in Chandler for $32.5 million. Will Strong, Mike Haenel, Andy Markham, Phil Haenel and Greer Oliver of Cushman & Wakefield represented the seller, ViaWest, in the deal. Located at 1600 S. Hamilton St. on 7.7 acres, the project features 140,372 square feet of fully leased industrial space — a 65,892-square-foot Building A and a 74,480-square-foot Building B. The buildings include 28-foot clear heights, 60-foot speed bays, gated and secured concrete truck courts and 38 rear-load doors offering dock-high and grade-level loading. Additional amenities include an ESFR sprinkler system, LED lighting, 2,000 amps of power per building and generous car and trailer parking. The project is adjacent to AZ 202 Commerce Park Phase I, a 106,000-square-foot, built-to-suit industrial project completed in 2018 that PODS Moving and Storage fully occupies. ViaWest Group developed all three buildings, delivering Building A and Building B in 2020.
By Matt Pesch, Vice Chairman, CBRE The multifamily market in Phoenix experienced a record-setting year in 2021. Market vacancy dropped below 3 percent for the first time, the region led all U.S. metros in year-over-year rent growth for every quarter and total multifamily investment sales volume topped $12 billion. This was nearly double the volume from 2019 and a 125 percent jump from 2020. These metrics are driven by Phoenix’s primary economic drivers of nation-leading population and job growth. As of October, Phoenix was one of only four U.S. metros to recover 100 percent of the jobs the region lost during the pandemic. This was driven by the stable recovery of long-established industries and growing sectors that are diversifying the region’s employment base. Case in point: Phoenix is home to one of the fastest-growing biotech sectors in the U.S. with the life sciences workforce expanding by 8.5 percent from 2019 to 2020, according to CBRE’s latest research. Likewise, large corporate office users continue to relocate or expand in Phoenix at an unprecedented rate, further driving the region’s robust employment recovery. The area’s strong employment recovery and population growth are the fuel driving Phoenix’s multifamily sector. The gains in the apartment …
TUCSON, ARIZ. — Eagle, Idaho-based Alturas Real Estate Funds has acquired Tucson Fiesta, a retail center at 4215, 4225 and 4235 N. Oracle Road in Tucson. EVT Tucson Fiesta sold the asset for $14.6 million. Chris Hollenbeck of Cushman & Wakefield represented the buyer in the deal. Three major retailers in the discount furniture, clothing and golf industries fully occupy the 93,005-square-foot property.
SCOTTSDALE, ARIZ. — High Street Residential and its joint venture partner PGIM Real Estate have broken ground on Raintree Multifamily, an apartment community in Scottsdale. Slated for completion in 2023, the five-story residential building will feature 192 apartments. The new development, which will receive a formal name at a later date, is situated next to Trammell Crow Co. and PGIM’s 175,000-square-foot Axis Raintree office building that was completed in January 2021. High Street Residential is a multifamily subsidiary of Trammell Crow. Units at the multifamily property will range in size from junior one-bedrooms to two-bedrooms and feature built-in workstations in select homes, quartz countertops, stainless steel appliances and large outdoor patios. Community amenities will include a sky lounge, an outdoor courtyard, a large amenity park with dog run, work-from-home area with ample individual workspaces, pool, spa, fitness center and pet lounge. ESG Architects is serving as architect and Weitz Co. is serving as general contractor for the residential portion of the development. High Street/Trammell Crow and PGIM purchased the entire 8.24-acre parcel of land in 2019 and began construction on Axis Raintree in October 2019. The office building is complete and available for lease, with CBRE marketing the asset.