Vestar JV’s $280M Tempe Deal Proves CMBS Rebirth

TEMPE, AZ-The $280 million acquisition of Tempe Marketplace is notable for its size – it’s one of the largest retail deals to close this year – but it also indicates the CMBS market has returned. A joint venture comprised of Vestar Development Co. and Rockwood Capital hooked a $200 million CMBS loan from Deutsche Bank to buy the 1.3-million-square-foot retail property.

“When we started the process [of getting a loan], we felt the chances of doing a CMBS deal would be slim because only a few deals had been done,” says Vestar President Rick Kuhle. The venture worked with Eastdil Secured’s Los Angeles office to find debt financing.