Regent Properties has obtained a $61.7 million bridge loan to refinance Elevate 24, a two-building, 323,251-square-foot office property in Phoenix’s Camelback Corridor. Public records show Forethought Life Insurance Co. provided the non-recourse financing. Working on behalf of the owner, a CBRE team facilitated the deal.
Elevate 24 is one of the 12 office holdings Regent Properties owns in the Valley, according to CommercialEdge information. Regent acquired the Class A asset in 2017 for $66.4 million from McCarthy Cook.
Completed in 1986 and most recently renovated in 2019, the office campus occupies nearly 5 acres at 4722 and 4742 N. 24th St. The buildings feature four above-grade and three subterranean levels. Amenities include a conference center, a 3,000-square-foot fitness center and 10 collaborative meeting areas, as well as the 1-acre Deck park with bocce ball and croquet.
Elevate 24 is roughly 7 miles northeast of downtown Phoenix, in the Camelback East submarket. Numerous hotels, restaurants and shops, including the 700,000-square-foot Biltmore Fashion Park Mall, are within walking distance. Also within walking distance is Biltmore Center, the 643,145-square-foot office landmark which traded last year in a record-breaking deal.
CBRE’s Bruce Francis, Dana Summers, Shaun Moothart, Robert Ybarra, Doug Birrell and Tim Bokinsky arranged the financing. The firm was also instrumental in the $33.8 million refinancing of Park One, a 217,433-square-foot office campus along the Camelback Corridor.
One of the largest financing
CommercialEdge data shows Elevate 24’s refinancing is one of the largest financing deals that have closed in the Phoenix office market since March. The top transaction was the $68 million loan that accompanied the $110 million sale of PetSmart’s headquarters.
According to a recent CBRE report, net absorption for Phoenix office product in the first quarter of 2021 was the third-lowest in history, with vacancy rising to 19.1 percent. And despite a slight decrease to roughly $28 per square foot, the average listing rate was the second-highest ever recorded.