McBride Cohen Receives Financing for First Phase of 3.2 MSF Mixed-Use Project in Tempe, Arizona

by Jeff Shaw

TEMPE, ARIZ. — The McBride Cohen Co. has received a $53.2 million mezzanine loan to develop the first phase of South Pier at Tempe Town Lake, a waterfront mixed-use project in Tempe. South Pier is a seven-phase project that will span 18 acres and 3.2 million square feet along the southern shoreline of Tempe Town Lake.

The first phase of South Pier will consist of 724 multifamily units across three towers, as well as parking garage with 850 spaces, 280 spaces of surface parking and 26,500 square feet of ground-floor commercial space.

Construction on the first phase began in January and is slated for completion by spring 2026. The Davis Experience is the architect for the project and Clayco is the general contractor.

At full build-out, South Pier will offer 18 total buildings, including thousands of housing units, 600,000 square feet of high-rise office space, two hotels and South Pier Isle, an entertainment district providing dining, retail, night life and entertainment venues. South Pier Isle also includes the Arizona Amazing Wheel, an 80-meter-tall observation wheel. The development site is located adjacent to the main campus of Arizona State University.

Pearlmark originated the mezzanine loan on behalf of Pearlmark Mezzanine Realty Partners and a commingled investment vehicle managed by Waterton. Pearlmark is a Chicago-based investment firm that targets domestic core to value-add real estate opportunities. Waterton is a property investment and management company with a focus on multifamily, senior living and hospitality properties. 

Banco Inbursa, a Mexico City-based bank, provided the loan. Cantor Silverstein Opportunity Zone Trust, a joint venture between Silverstein Properties, Cantor Fitzgerald and McBride Cohen, funded the equity required of the first phase. Tom Wilson of Jones Lang LaSalle advised on this capitalization.

“The closing of this deal significantly boosts our mission of delivering a world-class waterfront destination to the Phoenix Valley,” says Loren McBride Cohen, owner and CEO of McBride Cohen.

— Channing Hamilton

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