Buchanan Street Partners closed an $8.6 mil loan for construction of The Roosevelt, a 32-unit residential townhome development in Tempe, AZ. The project, located at 225 South Roosevelt St in Tempe, will be developed by a joint venture between a regional multifamily developer and a private real estate investment firm based in Scottsdale, AZ.
The Tempe submarket continues to benefit from growth in the insurance, finance and technology sectors, which has helped anchor demand for residential projects like The Roosevelt,” said Matthew Doerr, vice president at Buchanan Street Partners. “We were attracted to this new construction financing opportunity because the project differentiates itself from other residential developments with an energy efficient design and modern façade that caters to the region’s tech-forward culture.”
Cindy Hammond of Churchill Commercial Capital aaranged the 74% loan-to-cost, non-recourse solution over a 24 month term. Buchanan Street previously provided the borrower a quick-close land loan to acquire the 1.7 acre infill site in mid-2016.
The Tempe North office market continues to outperform all other submarkets in the Phoenix metro with 1.7 msf of positive net absorption in 2016. Major employers in the immediate area include State Farm Insurance, Microsoft, Morgan Stanley, Silicon Valley Bank and Arizona State University. The Roosevelt’s proximity to Mill Avenue will benefit the project because Mill Avenue is the premier live-work-play destination in the Phoenix metro.
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