Christina Grimme, vice president of Northmarq’s Cincinnati office, arranged acquisition financing of $25.5 million for Gainey Ranch Town Center I & II. The two-building, 126,516 sq. ft. 3-story class A suburban office properties are located at 7702 & 7600 E Doubletree Ranch Road in Scottsdale, Arizona. The transaction was structured with a 10-year term with 3-years of interest only followed by a 30-year amortization schedule. Northmarq secured the financing for the borrower, Alturas Capital Partners, through its relationship with a credit union.
“This is a repeat lender relationship for the client which was huge in getting this across the finish line,” said Grimme. “Especially with all the volatility in the market right now, we’ve seen acquisitions fall apart just because interest rates have been rising so quickly. Having a prior connection between borrower and lender facilitated by Northmarq provided certainty of execution. The lender was one of the few groups willing to go up to 75 percent loan to value.”
The property boasts strong fundamentals and leasing activity thanks to growing net migration numbers in the Phoenix and surrounding areas. Phoenix has maintained its ranking as the top metropolitan area in the nation for net migration for a third consecutive year, according to the latest data from the U.S. Census Bureau. Last year, Phoenix’s population grew by 106,008, outpacing the market’s 10-year average of 85,562 people.
While CoStar notes that the office sector struggled during the pandemic, announcements for office property closings has continued in the area, thanks to the expanding labor pool. “Financing for other office properties in other markets presents numerous challenges, but with more people moving to the Scottsdale/Phoenix area everyday, Gainey Ranch Town Center was very attractive for all parties involved.”
Amenities on the property include: Atrium, controlled access, energy star labeled, LEED certification. The property features 45 surface parking spaces, 85 covered parking spaces and reserved parking. Tenants of the property have shopping, dining, and banking all within walking distance.