Phoenix-Area Retail Center Lands $31M in Financing
- May 12, 2017
Meridian Capital Group recently arranged $31.3 million in balance sheet financing on behalf of Cire Equity, for the acquisition of Park West, a 249,363-square-foot mixed-use retail center located in the Phoenix submarket of Peoria.
Managing Director Seth Grossman and Vice President Jackie Tran of Meridian’s Carlsbad, Calif. office secured the three-year, floating-rate, full-term interest-only payment loan through a balance sheet lender.
Park West is located on a 64-acre site at the northwest corner of Arizona Loop 101 and Northern Avenue, west of Glendale and in close proximity to Phoenix’s central business district. The center consists of 15 buildings that offer a variety of entertainment venues, restaurants, shops and commercial service spaces.
Cire Equities purchased the property with an additional eight interior undeveloped pads and 18 acres of development land in the fourth quarter of 2016 for $33.5 million from Parke West LLC, a company formed by the Howard Hughes Corp. in Dallas. At the time of the transaction, the asset was 68 percent occupied, the tenant roster including Harkins Theater, Victoria’s Secret, Bed & Body Works, Chico’s, Vans, BJ’s Restaurant and Flemings.
“The quality of the center is phenomenal and the price our client paid is significantly below replacement cost,” said Grossman in a prepared statement. “In collaboration with the client, Meridian was able to demonstrate a clear path to significant upside, including leasing vacant space, extending existing short-term leases, and outlining the potential future development of many interior pad sites and additional developable land,” he added. “The lender understood the vision, and CIRE Equity’s track record, which helped ensure a smooth execution from start to finish.”
Recently, Meridian has secured a $14 million acquisition loan on behalf of Cire Equity for Paradise Plaza, a Kmart- and Walgreens-anchored shopping center located in Sparks, Nev.
Image courtesy of Meridian Capital Group