Dealmaker: Newmark Secures $53M for Arizona Assets

Newmark, San Francisco, secured $52.5 million in financing for five Arizona commercial properties.

Principal Tim Storey and Associate Vice President Chad Metzger arranged $39.3 million for four properties through various capital sources. The transactions included $15.7 million for Heritage Marketplace, a mixed-use retail/office development in Gilbert’s Heritage District. A commercial mortgage-backed securities lender provided the 10-year, non-recourse loan.

Storey and Metzger also secured $11.4 million in construction-to-permanent financing for Jacinto Place Apartments. Upon delivery late this year Jacinto Place Apartments will include 104 units on 5.3 acres. A life company lender provided the funds, making it the second construction-to-permanent loan Newmark has arranged for this borrower and lender.

In Phoenix, Storey and Metzger secured a $7.5 million 20-year life company loan for Clocktower Corporate Center, a 110,000-square-foot Class B office building near South Mountain. Built in 1987, the asset recently completed extensive renovations and is currently 98 percent occupied.

Elsewhere in Phoenix, Gateway Executive Center received a $4.7 million loan. The 40,000 square-foot Class B office building delivered in 2006 and is currently 100 percent occupied by six tenants. A life company lender provided seven-year non-recourse financing.

In Sun City, Newmark Principal Adam Parker arranged $13.2 million in permanent financing secured by La Ronde Centre, a 110,000-square-foot medical office building. The non-recourse loan from a regional bank loan included a $920,000 tenant improvement/leasing commission facility and includes flexibility to sell off a piece of collateral without triggering a prepayment premium.

Presently the property has one surgery center in operation. Another surgery center has signed a lease and will start tenant improvements in the near future, Parker said.