PHOENIX-A joint venture comprised of McCarthy Cook & Co. and Morgan Stanley Real Estate has obtained $40 million loan from Mesa West to capitalize a class A office portfolio here.
The JV acquired the office properties in an all cash deal from Teachers Insurance and Annuity Association of America last October. The four-year loan is typical of many Mesa West loans, which provide 60% to 70% loan-to-value, according to Steve Fried of Mesa West.
“We’re seeing sponsors be more competitive by taking down assets all cash and putting debt on after they’ve closed,” Fried notes.
They properties are: 24th & Highland, a two-building complex located at East Highland Avenue and N. 24th St., and Park One, a two-building office campus located at the intersection of N. 22nd Street and East Highland Avenue. Local sources say the buildings are about 75% occupied.
Both properties are situated near the Camelback Corridor's “Main and Main” intersection of 24th Street and Camelback Road. They are surrounded by other prestigious projects including Camelback Esplanade, 24th at Camelback, Camelback Center, two high-rise luxury residential towers, Biltmore Fashion Park and the Ritz Carlton Hotel.
“Phoenix is a tough market, and I don’t think everybody would lend there,” Fried admits. “But in this case we have the right sponsor with high-quality properties in the best location and at the right basis.”
Fried tells GlobeSt.com the location of these properties was the key for Mesa West. “These buildings are located at Ground Zero for Phoenix,” he explains. “All the businesses want to be here, and with the flight for quality taking place and tenants that are upgrading, these buildings will have an advantage because of the reset basis, which allows for lower rental rates.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
