For more retail coverage, click GlobeSt.com/RETAIL.
MESA, AZ-A Phoenix-based developer, Arivest Corp. has secured a $9.8-million loan to cover 100% of the construction tab for Kiowa Village Retail Center, a 46,871-sf unanchored development. The under-construction center will be completed in early 2006.
Oak Brook, IL-Inland Mortgage Capital Corp. provided the loan, which has a one-year, interest-only term and two six-month extensions for the 5.2-acre project at the intersection of Power Road and Kiowa Avenue. The interest rate is prime plus 2%, which is about 8% right now, according to Craig C. Johnson, executive vice president and COO for Aries Capital Inc.'s Phoenix office.
Johnson, who teamed with Aries' Eric Jones, tells GlobeSt.com that a lot of lenders were interested in funding the project. "None of them could compete with 100% financing that Inland offers," he says. The center is 27% preleased to Leslie's Pool, Mattress USA, Quizno's, Fantastic Sams and Bajio Grill. The rent quote ranges $22 per sf to $24 per sf.
Inland is an active Valley lender. "From a lending perspective, they have more than 200,000 sf in the Valley," Johnson says. "They really like the market."
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