Equus Approaches $527M Refi for Phoenix Portfolio
Morgan Stanley and Bank of America will co-originate the debt.
Equus Capital Partners is on track to secure a $527.1 million CMBS loan to refinance a 3.7 million-square-foot industrial portfolio consisting of 36 properties spread throughout metro Phoenix, according to a KBRA presale report.
Morgan Stanley and Bank of America, two of the largest commercial mortgage lenders, will co-originate the debt on Oct. 8, 2026. The note is set to carry a two-year term with three one-year extension options and floating interest-only payments at SOFR plus a spread of 2.05 percent.
Proceeds will refinance roughly $449.7 million of existing debt and return approximately $68.9 million to Equus, as well as pay closing costs.
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Equus earmarked more than half of the allocated loan amount for facilities in Phoenix, followed by Peoria, Ariz. (13.8 percent) and Chandler, Ariz. (7.8 percent). Other cities include Gilbert, Tempe, Mesa, Glendale and Goodyear.
Nearly 90 percent of the assemblage features warehousing and distribution use cases, with the remaining serving as R&D, showroom, service and manufacturing facilities. The average vintage across the properties clocks in at 37 years, with more than 70 percent of buildings having clear heights under 24 feet.
The collection has no major tenant exposure with a granular roster of 797 unique companies occupying the portfolio. The only warehouse fully leased to a single tenant is Reliance Broadway’s Building F, a 103,094-square-foot facility occupied by a distributor of natural stone and products used in residential and commercial construction. As of October 2026, the collateral was 91.2 percent leased.
Tracing Equus’ $1.2 billion Arizona investment
The portfolio was part of a 7.3 million-square-foot, 74-asset collection that Equus acquired across Arizona in 2021. That assemblage commanded nearly $1.2 billion and became subject to an $805.9 million CMBS loan. DBR Investments, Morgan Stanley and JP Morgan issued the debt.
Equus divested some of the properties within that portfolio. Last year, the firm sold an 889,352-square-foot collection in the Valley of the Sun to BKM Capital Partners and Kayne Anderson Real Estate for $167.9 million. And just last week, Equus divested a 14-property portfolio spanning 1.3 million square feet in Tucson, Ariz., for $165.8 million to Everview Partners, as reported by Real Estate Daily News.
Since its inception in 1980, Equus has acquired and developed more than 62 million square feet of industrial space. As of October, the company managed 35 million square feet of product with more than 3,100 tenants.
Phoenix fundamentals draw industrial debt
Phoenix’s industrial market continues to perform well, logging robust rent growth and moderate vacancy despite historic supply waves, according to a Yardi Matrix report. Solid fundamentals continued to aid debt underwriting with other significant deals closing this year.
In March, Lincoln Property Co. and Goldman Sachs Alternatives obtained a $133 million refinancing loan for the second phase of Park303, a 3.8 million-square-foot park in Glendale. Affinius Capital issued the note which retired $164 million in construction debt originated by Allianz in 2022.
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