Property Type Retail
Financing Type Permanent
Date August 4, 2022
Arrowhead Marketplace Parcel Features Strong Tenant Roster Including Office Depot, Dollar Tree, Boot Barn, Party City, and Others; Well Leased Suburban Community Retail Centers Financing at Low Leverage Strong Candidates for Attractive Life Company Fixed Rate Debt
Phoenix, Ariz. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $13 million of permanent financing for the acquisition of a 11.57-acre parcel at Arrowhead Marketplace offering 128,500 square feet of rentable space fronting the Bell Road retail corridor in Glendale, Ariz. The financed asset features high occupancy, with tenants including Office Depot, Dollar Tree, Boot Barn, Party City, Salt Creek Home Furnishing, and others. Additional tenants at the plaza occupying parcels not included in the acquisition are Best Buy, Bank of America, Raising Cane’s Chicken, Discount Tire and Cheddar’s Scratch Kitchen.
Gantry’s Tim Storey, Principal with the firm’s Phoenix production office, secured the financing on behalf of the borrower, Arizona Partners. The ten-year, fixed rate loan featuring 25-year amortization was secured through one of Gantry’s correspondent life company lenders.
According to Gantry’s Tim Storey, “Suburban community retail has turned out to be a solid performer post COVID, and fixed rate lenders continue to underwrite performing assets in this category at what can be considered attractive rates for permanent and bridge loans. As the market takes a pause to reset in recognition of current market realities and upward rate pressures, we encourage our clients in the retail sector to recognize that current rates for quality assets are holding at what can be considered generational norms from past cycles. Deals like Arrowhead Plaza are getting done, options are out there for experienced sponsors and, as a consideration, life company lenders will lock rate at application on their loans, seen by many as an advantage hedging against future rate increases moving into the second half of 2022.”