Exclusive: Phoenix Office Tower Secures $63M Loan
Goldman Sachs originated the note for the DL Properties asset.
DL Properties has obtained a $63 million loan for Central Arts Plaza, a 485,687-square-foot office tower in Phoenix, according to Yardi Matrix information. Goldman Sachs originated the note.
Previous financing includes a $54 million loan from Metropolitan Life Insurance Co. from October 2020, the same data provider shows. That note matured recently.
The company acquired the asset back in January 2018, when McCarthy Cook sold it for $80.7 million. That amounted to more than $166 per square foot.
Located at 1850 N. Central Ave., the 24-story tower is less than 2 miles from downtown Phoenix and close to Interstate 10. Phoenix Sky Harbor International Airport is 6 miles southeast.
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Completed in 1990, the office building has floorplates averaging 18,500 square feet, along with 15,000 square feet of ground-floor retail space. The property features 10 passenger elevators, a playhouse theater and a fitness center, as well as a conference center.
Tenants at the building include Dickinson Wright, Stinson and Arizona Benefit Plans, among others, according to Yardi Matrix information. Phoenix’s average listing rate as of September clocked in at $29.4, marking a 4.4 percent year-over-year growth, a Yardi Matrix office report shows.
Office loan originations increase year-over-year
Office loan originations surged 181 percent year-over-year as of the third quarter, according to a Mortgage Bankers Association report. The sector also showed strong short-term momentum, with originations increasing 67 percent from the previous quarter, signaling renewed lending activity and investor confidence in office assets.
In the third quarter of this year, Brookfield Properties obtained a $1.3 billion loan package to refinance 660 Fifth Ave., a Manhattan office tower. Citi Real Estate, Barclays, ING Capital, Bank of America and Santander Bank originated and sold the CMBS debt. The 1.3 million-square-foot property was valued at $2 billion.
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