SAN DIEGO (June 15, 2020) – Eric Flyckt, managing director-debt and equity, and Casey Allred, vice president, both of NorthMarq’s San Diego office, arranged a $46,000,000 construction loan and $27,500,000 mezzanine equity investment for a Class A spec office project located in Chandler, Arizona.
The project comprises two, three-story, buildings totaling 300,000 sq. ft. and an 800-stall parking structure. The concrete tilt-up buildings will offer 10’ to 12’ ceiling heights, high-quality finishes and a 6/1,000 parking ratio. The loan, made to an affiliate of the Douglas Allred Company, was provided by Bank OZK and the mezzanine equity was funded by an insurance company for whom NorthMarq is a correspondent.
Park Place is a 200-acre business park assembled and developed by the Douglas Allred Company beginning in 2007. It is located at the intersection of the 101 and 202 freeways, which is home to leading-edge companies involved in financial services, technology, life sciences and other industries needing a skilled and educated workforce. In addition to Class A office buildings, this master-planned park includes restaurants and hotels.
To date, Douglas Allred Company has completed 1,530,000 sq. ft. in Park Place comprising office, manufacturing and retail buildings. All but one of the 10 office buildings have been built spec. The office buildings total 1,250,000 sq. ft. and are 95% leased mostly to major national companies – many of whom are investment grade.
Douglas Allred Company, based in San Diego, is a full-service real estate firm with projects in office, industrial, retail and residential sectors. The 50-year-old firm is a recognized leader in both real estate development and asset management.
“We thoroughly scoured the market so as to source favorable terms based on the project’s strong location in a very healthy office market, the quality of the buildings, and the Douglas Allred Company’s expertise and solid track record of building and leasing similar spec projects throughout the Phoenix area and in Southern California,” noted Flyckt.
Construction will commence immediately and completion is scheduled for October 2021.