Phoenix Spec Office Project Lands $74M in Financing
- Jun 17, 2020
Douglas Allred Co. has secured a $46 million construction loan and $27.5 million in mezzanine equity for a two-building speculative office project within its 200-acre Park Place mixed-use development in Chandler, Ariz.
NorthMarq’s San Diego office facilitated the construction financing from Bank OZK as well as the mezzanine equity investment, which was secured through an insurance company. Construction is scheduled to begin immediately, with completion set for October 2021.
The three-story Class A buildings are slated to total 300,000 square feet. According to NorthMarq, the properties will have 10- to 12-foot ceiling heights, with the development offering a parking ratio of 6 spaces per 1,000 square feet in an 800-spot structure.
A growing mixed-use business park
Located at the intersection of freeways 101 and 202, Allred’s Park Place already encompasses 1.5 million square feet of office, manufacturing and retail space. Of the park’s 10 office buildings, all but one have been speculative projects. The office section adds up to more than 1.2 million square feet and is 95 percent occupied.
According to Yardi Matrix data, the 10 buildings range between 69,000 and 354,000 square feet and came online between 2008 and 2019. Park Place’s tenant roster includes Northrop Grumman, Infusionsoft, Allstate, INSYS Therapeutics, Education Management Corp. and Fresenius Medical Care, among others.
Allred also owns several other office buildings across metro Phoenix, including Superstition Springs Business Park in Mesa and a 150,000-square foot property at 1330 W. Southern Ave. in Tempe.
NorthMarq Managing Director Eric Flyckt and Vice President Casey Allred worked on behalf of the borrower to secure both construction financing and the mezzanine equity for the park’s upcoming additions. Earlier this year, both were also part of the team that scored a $185 million refinancing deal for the park’s Northrop Grumman component.