CTL Capital LLC, on behalf of its institutional investors, has closed a $425 million long-term construction-to-permanent loan for the Mosaic Quarter Sports Complex in Tucson, Arizona. The project, led by Knott Development Company, marks Phase 1 of the larger Mosaic Quarter development and will feature a state-of-the-art 3-rink ice-plex, as well as a multi-purpose indoor sports facility designed to accommodate a variety of events, including basketball, volleyball, and soccer.
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The $425 million loan, structured as a credit tenant lease (CTL) financing, is secured by a long-term lease agreement between the developer and Pima County. This financing arrangement is a testament to CTL Capital’s expertise in providing long-term, high-value loans for real estate developments backed by investment-grade tenants. More information on CTL Capital’s loan programs can be found at https://ctlcapital.com.
A Vision for Tucson’s Future
Upon completion, the Mosaic Quarter Sports Complex will be a major economic driver for the region, supporting approximately 2,000 local jobs and generating an estimated $8 billion in economic impact over the next 40 years. This transformative project will complement Tucson’s existing Kino Sports Complex, the largest outdoor sporting venue in the western U.S. With over 200 acres of facilities for baseball, soccer, tennis, and swimming, the addition of Mosaic Quarter will solidify the region’s position as a premier destination for sports and entertainment.
Future phases of Mosaic Quarter are expected to include additional sports venues, as well as residential, commercial, and hospitality components, further enhancing the community and expanding Tucson’s economic base.
Collaborators and Key Partners
Hensel Phelps Construction Company, Inc. has been appointed as the general contractor for the project, while Ameresco, Inc. will develop a 1 MW solar installation to ensure sustainability. BWE’s Charleston office originated the transaction with CTL Capital. Legal representation for CTL Capital was provided by Thompson Hine LLP, with Goulston & Storrs LLP and Snell & Wilmer LLP representing the developer.
