Mesa West Capital has provided KB Investment and Development Company with $108 million in first mortgage debt for its acquisition a 328-unit multifamily property in Phoenix, Arizona.
The five-year, floating rate loan is secured by Skywater at Town Lake located at 601 W. Rio Salado Parkway in the Phoenix submarket of Tempe. Built in 2015, the five-acre property offers a mix of floor plans ranging from studios to three-bedroom apartment homes housed in five four-story elevator-served buildings.
Skywater at Town Lake benefits from its prime location within the Tempe submarket. The property draws from the approximately 54,000 students attending nearby Arizona State University and more than 100,000 people that now work in Tempe.
Over the last 10 years, Tempe has evolved from a traditional college town centered around ASU to an economically diverse, urban, employment corridor with the fastest‐growing concentration of technology and financial services companies in the state. Tempe’s office market has grown from 2.7 million square feet in 2014 to more than 11 million square feet today. Skywater at Town Lake also is within walking distance to the Mill Avenue Entertainment District, which boasts one of the highest concentrations of restaurants café, microbreweries, sports bars, and retail amenities in Arizona.
In addition to its location, tenants have been drawn to the property for its extensive amenities which include a sundeck swimming pool with views of Tempe Town Lake, a top floor resident clubhouse with a full kitchen, pool tables and wrap around balcony, an outdoor kitchen and entertainment space with firepits and games, a two‐story fitness center with a yoga studio and Peloton bikes, EV charging stations, a bike/paddle board/kayak storage room, an underground parking structure and an on‐site coffee shop.
“Tempe’s unique demand drivers including proximity to major employers and ASU as well as entertainment and lifestyle amenities in the market are supporting the strong demand for housing” said Mesa West Vice President Brian Hirsh who led the origination team. “Rent growth has accelerated at a historic pace in the submarket as vacancy rates compressed to their lowest level in a decade.”
Skywater at Town Lake was 96.6 percent leased at closing.
The financing was arranged by Rocco Mandala, Vice Chairman at CBRE in Phoenix.
