Churchill Commercial Capital Inc., an Arizona based commercial mortgage banker actively arranging loans and joint venture equity for commercial and multifamily properties, closed on two loans worth a combined $36.6 million to finance the acquisition of two properties in different cities in Arizona.
A $19.1 million loan was used to acquire The Ledges at West Campus, a 205 unit multifamily property located in Tucson. The property was sold for $23 million ($112,195 per unit) with Marcus & Millichap’s Hamid Panahi, Steve Gebing and Cliff David brokering the sale for the seller and Berger Investment Group’s Howard Berger representing the buyer.
Churchill arranged a three-year non-recourse, high leverage, borrower friendly bridge loan with its agency correspondent lender and Tempe Friends and Family, LLC as borrower. The bridge loan will provide the borrowers the opportunity to stabilize operations and position it for permanent take out financing with the same lender in the future.
The Ledges is located just one and a half miles west of the Interstate 10, providing residents rapid access to all major employment and entertainment centers in Tucson, as well as four miles west of the University of Arizona campus, and one mile north of Pima Community College’s West Campus. The multifamily property was developed in 1997 and totally renovated in 2014-2015. It offers one, two and four-bedroom units and ample common area amenities, situated on site with varying elevation affording excellent mountain views.
The other deal took place in Northeast Phoenix.
Cindy Hammond, President at Churchill arranged a $17.5 million loan for a Canadian-based REIT, to refinance its acquisition debt on the Greenway Park Plaza Shopping Center in Northeast Phoenix. The shopping center total 212,000 square feet and is anchored by a Food City, Ross Dress for Less, Goodwill and a Planet Fitness is planned for construction.
This loan was a non-recourse, moderate leverage, borrower friendly loan with a life insurance company lender. The loan was structured with holdbacks for construction and rent for the Planet Fitness lease, which was signed, but not yet fully built. Other features include a fixed, declining balance prepayment structure and interest only payments. As a correspondent for this life company, Churchill will service the loan. This center enjoys an infill location at 32nd Street and Greenway Road.
Established in 1994, Churchill’s lending relationships include major life insurance companies, multifamily agency lenders, specialty finance companies who make bridge loans, investment banks originating loans destined for securitization, and select banks making portfolio loans. Churchill locally services loans on behalf of its correspondent lenders.
