Strategic Locations Rank High in Lending Appetite

Elevate 24 is a 323,251-square-foot class-A office property located at 4722-4742 N. 24th St. in Phoenix, one of several of Regent Properties’ holdings in the Phoenix market. This type of property points to corporate users’ ongoing confidence in the growth and expansion of the regional office sector.

CBRE’s Bruce Francis, Dana Summers, Shaun Moothart, Robert Ybarra, Doug Birrell and Tim Bokinsky recently facilitated the $61.7 million non-recourse bridge refi loan on behalf of the owner, Regent Properties.

“The lending appetite signalizes that high-quality office properties strategically located in growth markets such as Phoenix continue to be considered desirable assets,” says Summers.

Phoenix office net absorption in the first quarter was the third lowest in history with the vacancy rate climbing to 19.1 percent, according to CBRE research. Under-construction space in the region totals 1.7 million square feet, 21.9 percent of which is pre-leased. Full-service gross asking lease rate decreased slightly to $28.07, the second highest ever recorded.

“Multiple lenders competed fiercely for this financing because of the outstanding sponsorship and asset quality, despite lingering challenges from the pandemic,” said Francis. “The loan was secured by a debt fund that provided a quick closing and flawless execution.”