SCOTTSDALE, AZ-A local developer has secured $79 million to retire construction debt for one office building and finance site acquisition and development of additional class A office space at Raintree Corporate Center. The financing is a 3.5-year bridge loan with a 24-month mini-perm option.
Cavan Real Estate Investments retired debt against the 174,022-sf Raintree III at 8800 E. Raintree Dr. and adjacent six-story parking garage. The new capital opened the door for work to start on the park's fourth building and a parking garage. The 182,041-sf building has just broken ground at 8888 E. Raintree Dr.
Part of the loan was used to buy five acres for future development beside the two buildings. Doug Stutzman with Core Mortgage Group LLC of Scottsdale arranged the financing through Tustin, CA-based Fremont Investment & Loan.
Cavan has spent five years developing and leasing up Raintree Corporate Center's first two buildings. The lease-up prompted construction of two more buildings. "We already have tenants in Phase III," says Kathy Zvara, Cavan's project manager. "There's still work being done there." She tells GlobeSt.com that the fourth building will deliver in early 2008.
David Sotolov, Fremont's vice president and senior loan originator in Phoenix, says he's not surprised at the rapid lease-up of the corporate center. "The class A office market in Scottsdale has been extremely strong for the past couple of years. This particular site was the best out there, right on the freeway and major interchange," Sotolov says.
Zvara says Raintree IV will build out the developer's original land block, leaving the just-acquired five acres as the only way to expand the development. The Raintree Corporate Center mix also includes single-story office buildings and office condominiums.
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