"This had attractive anchors and credit tenants and a strong sponsor with a proven track record with retail properties in the area," says Angela Azizian, senior director for GE's North America Lending Group. De Rito bought the 87%-leased Scottsdale Pavilions at 9175 E. Indian Bend Rd. on the Salt River Pima-Maricopa Indian Reservation from Ralph and Rob Horlacher of Scottsdale.
GE provided a three-year, fixed-rate loan for De Rito, the first transaction between lender and borrower. According to GE, De Rito has budgeted $19.3 million for renovations and another $6.85 million for tenant improvements as part of its strategy to increase occupancy and raise rents to market levels.
Scottsdale Pavilions' anchors include Target, Home Depot, Mervyn's, Toys R Us, Best Buy and Sports Authority. "Our commitments to capital improvements and strong retailer relationships will help us retain current tenants and attract new ones as major leases expire over the next five years," Marty De Rito, CEO of the locally based firm, says in the release.
Azizian tells GlobeSt.com that GE Real Estate had financed retail and multifamily properties in the region, but the transactions were considerably smaller than De Rito's financing for Scottsdale Pavilions. She says the GE team is evaluating loans for office and flex properties as it gains ground in the region.
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