Newport Beach, Calif. and Tempe, Arizona (April 17, 2017) – Buchanan Street Partners closed an $8.6 million loan for construction of The Roosevelt, a 32-unit residential townhome development in Tempe, Arizona. The transaction underscores Buchanan Street’s expanding lending platform and attraction to Greater Phoenix, a region where the company currently owns or has financed approximately 1.5 million square feet of office and multifamily projects.
“The Tempe submarket continues to benefit from growth in the insurance, finance and technology sectors, which has helped anchor demand for residential projects like The Roosevelt,” said Matthew Doerr, vice president at Buchanan Street Partners. “We were attracted to this new construction financing opportunity because the project differentiates itself from other residential developments with an energy‑efficient design and modern façade that caters to the region’s tech-forward culture.”
Buchanan Street provided a 74 percent loan-to-cost, non-recourse solution over a 24‑month term. The company previously provided the borrower a quick-close land loan to acquire the 1.7‑acre infill site in mid-2016. The project is located at 225 South Roosevelt Street in Tempe and will be developed by a joint venture between a regional multifamily developer and a private real estate investment firm based in Scottsdale, Arizona.
The Tempe North office market continues to outperform all other submarkets in the Phoenix metro with 1.7 million square feet of positive net absorption in 2016. Major employers in the immediate area include State Farm Insurance, Microsoft, Morgan Stanley, Silicon Valley Bank and Arizona State University. The Roosevelt’s proximity to Mill Avenue will benefit the project because Mill Avenue is the premier live-work-play destination in the Phoenix metro.
“We are a believer in the Phoenix market and its projected growth,” said Brian Payne, vice president of acquisitions at Buchanan Street Partners. “We will continue to explore lending and direct acquisition opportunities throughout the Phoenix metro to further strengthen our portfolio in this area.”
The borrower was represented by Cindy Hammond of Churchill Commercial Capital. Buchanan Street represented itself.
ABOUT BUCHANAN STREET PARTNERS
Buchanan Street Partners is a real estate investment firm based in Newport Beach, California that invests debt and equity capital on behalf of institutional and private investors. Since its inception, Buchanan Street has invested over $6 billion in both real estate debt and equity investments. The company is comprised of a highly skilled team that has invested through multiple real estate cycles enabling them to identify opportunities and maximize value while prioritizing capital preservation. www.www.buchananstreet.com.
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