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Deal of the Week: Retail Pad Site in Phoenix

Images: Chad Robertson/Adobe Stock; Diversified Commercial Capital

Western Garden Commercial is a retail pad site equaling ~24.5 acres of land just a few miles south of the Cardinals Stadium. The subject is nestled among the Taylor Morrison and Fulton Homes SFR communities and the Algadoon Center being developed by Lennar. The borrower needed to refinance out of a private money deal and needed funding to complete pad delivery for a sale and/or ground lease delivery.

Property Type: Retail Pad Site in Phoenix
Loan: $5.5M Construction Loan
Lender: Core Bank
Rate: 8.35% Fixed

The development of the surrounding land by the national home builders, in addition to the tremendous growth and popularity of the submarket made this deal attractive. The owner was able to presell and prelease the site to national retail tenants that wanted to be at this location. Those tenants include Dutch Bros, EOS Fitness, Farmer Boys and Brakes Plus. The ability to presell pads and prelease the retail space allowed Core Bank to take comfort in the project economics.

The loan has a 24-month interest-only term and all proceeds will be used for site development. The borrower had 30% equity in the deal and Core Bank required recourse.

Diversified Commercial Capital
7339 E. McDonald Drive
Scottsdale, AZ 85250
Chris Natale, Managing Principal
(602) 881-5170
chris.natale@dpcre.com

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