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George Smith Partners Arranges Financing for $150M Arizona Spec Development
George Smith Partners completed $105.5 million in financing for a portion of The Watermark Tempe, a $150-million, mixed-use, ground-up development in Tempe, AZ. The master-planned property, which is being developed by Fenix Development, Inc., is located at 430 North Scottsdale Rd. on Tempe Town Lake.
George Smith Partners’ Scott Meredith arranged $25 million in mezzanine construction financing and supported Fenix in negotiating an $80.5 million senior loan, all of which will fund the speculative development of a 15-story, 250,000-square-foot, Class A high rise office building and 44,000 square feet of lifestyle retail space.
“This is a landmark project for Tempe,” says Meredith. “As the very first high-end, truly mixed-use project in this city, there is tremendous potential to leverage Tempe’s high-tech employment, rapidly growing population, and affluent local community. The challenge, however, was in navigating the perceived historical volatility of the Tempe and Phoenix office markets.”
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