CBRE arranged $40 million in debt financing for Bella Victoria, a 236-unit, high-end, multifamily property in Mesa, AZ.
Bruce Francis, Dana Summers, Doug Birrell, Bob Ybarra and Shaun Moothart of CBRE’s Debt and Structured Finance team arranged the debt provided by New York Life on behalf of the developer, Bela Flor Communities and Hudd Hassell.
The newly-built, luxury condominium rental community, located at 1350 S. Ellsworth Road, features such amenities as a 4,000 square-foot clubhouse, state-of-the-art fitness center and fiber optic communications network, two resort-style swimming pools and spas, and a pet park, among other amenities. The individual condos have direct-access garages and electric vehicle charging ports.
The lender provided a loan with a six-month forward commitment, a 25-year term, 5 years of interest only, followed by a 30-year amortization. The property was nearly 94 percent leased at the time of construction completion.
“Bela Flor and CBRE worked hand-in-hand with the lender, New York Life, which provided the long-term fixed-rate financing on this fantastic project,” said Francis. “It was a pleasure working with the entire Bela Flor team on this important project. The greater Phoenix metro region is thriving, and particularly the area around Mesa has been getting a lot of attention from investors and developers due to its great location and evolving live-work-play environment.”
Commercial and residential construction in the East Valley of the Greater Phoenix metropolitan area has kept up with the growing number of students, residents and businesses, resulting in a dense live-work-play atmosphere, according to CBRE research. Large investments in the region including the addition of light rail — connecting Mesa and Tempe with Phoenix — have added to the area’s urban appeal. Today, approximately one-third of the metro’s residents live in the East Valley, and its population over the next five years is projected to grow at twice the national average. Rental rates and vacancies reflect these trends. Fourth-quarter average rental rates for apartment properties in South Mesa have climbed 5 percent year-over-year to $1.02 per square foot while the vacancy rate has dipped 39 basis points to 2.75 percent, according to CBRE research.