Jeff Teetsel, vice president and regional manager with Fremont Investment & Loan's Phoenix office, tells GlobeSt.com that the bridge and construction loan was the largest loan given by the financial institution and is one of the biggest loans in the Valley made by a single lender. He says the five-year loan has a floating with a margin in the mid-3% range over six months LIBOR.
"This transaction has all the key attributes: the top submarket in the metro area for both retail and office space; a high profile, and high-traffic intersection; outstanding demographics in terms of both growth and income; exceptional design and building quality; and a well-regarded experienced local developer," Teetsel said of the deal.
About $54 million of the loan, placed by Scott McPherson and Eric Inabinet of Phoenix-based Capital Advisory Group, is designated for new construction, which is scheduled to begin later this summer. That money will be used to fund Phase II, which includes 255,000 sf in two four-story office buildings, an additional 80,000 sf of retail space and an 800-space parking garage along with two pre-leased restaurant pads. Aside from the two restaurant tenants, Maggiano's Little Italy Restaurant and the Scottsdale Steak & Chop House, no other leases have been signed. The existing 355,000 sf of retail space is 97% leased.
As part of the construction, the developer will also build a 125-foot tall spire, designed by renown architect Frank Lloyd Wright, near Scottsdale Road and Frank Lloyd Wright Boulevard where the Promenade is located. The spire is designed to be a signature element of the plaza.
The construction will complete the final phase of the 87-acre, one-million-sf shopping plaza, which has tenants such as Lowe's, the Great Indoors, Office Max, PetsMart, Nordstrom Rack, Linens 'N Things, Cost Plus and Old Navy.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.