Goldman Sachs Grants $ 102 million Loan to Acquire Tucson Retail Centers – Commercial Observer
City of West Immo, HSL properties and Iridius capital have secured $ 102 million in acquisition debt from Goldman Sachs Commercial Observer has learned to buy a sprawling retail center in Tucson, Arizona.
Fixed-rate, rate-only financing from Commercial Mortgage-Backed Securities (CMBS) covered approximately 62 percent of the company’s reported costs 246,256 square feet Outdoor mall, The enchanted, which recently traded for $ 165 million, according to announcements from the buyers and the consultancy JLL.
“La Encantada is a one-of-a-kind retail and lifestyle center,” founder and chairman of Town West Jim Horvath said BizTucson as part of their sales announcement. “We are excited about the opportunity to be part of a project that will bring people from all over Tucson together for years to come.”
JLLs Patrick Dempsey headed a team that represented the seller, Macerich, and Jeremy Womack and Zane Coffman, also from JLL, the company announced that it has raised the acquisition financing for the buyers.
Goldman Sachs officials declined to comment on the transaction.
“The CMBS execution by the lender was the best in its class and we are delighted with the incredibly low interest rate and full interest payments,” said Womack. “Although the market for loans secured by some retail properties can be challenging, the high quality of this property, the excellent tenant mix and the outstanding sponsor in the partnership between the three local owners have helped us to obtain the best loan terms. for the new owner. “
La Encantada is an open air shopping mall in 2905 East Skyline Drive in Tucson, north of the city center in the Catalina Foothills at the foot of the Santa Catalina Mountains, with a view of Mount Kimball.
The property was built in 2003 and currently offers a wide mix of retailers and deli and beverage outlets including Apple, Ann Taylor, Coach, Crate & barrel, Warby Parker and AJ’s Fine Foods, according to the mall’s website. It’s 93 percent rented, according to JLL, which states that more than 35,000 residents within five kilometers of the property have an average annual household income of nearly $ 121,000.
“This asset is the crown jewel of Tucson retail,” said Dempsey of JLL. “Many of the stores in La Encantada are exclusive to the area and have an attraction that expands the entire market. The lack of available land for new developments in the Foothills retail submarket makes La Encantada an irreplaceable property. “
Chairman of HSL Properties Humberto Lopez BizTucson said that the joint venture’s “vision” for the property is an “updated and vibrant La Encantada that will provide consumers with experiences and events that cannot be reproduced online”.
Mack Burke can be reached at [email protected].