CBRE Capital Markets has arranged a $45.8 million refinancing for Scottsdale Towne Center, a large retail property in Scottsdale, Arizona. The 168,090-square-foot center is located at 15444 North Frank Lloyd Wright Boulevard and sits at the southeast corner of Loop 101 and Frank Lloyd Wright Boulevard within the Scottsdale Airpark, described as Arizona’s second-largest employment corridor. The refinancing follows several years of active asset management since the current sponsor acquired the property in 2021.
The debt and structured finance team from CBRE, consisting of Shaun Moothart, Bruce Francis, Doug Birrell, Bob Ybarra and Nick Santangelo, secured a 5-year, fixed-rate loan for the sponsor. The financing is structured as full-term interest-only, indicating that the borrower will make interest payments for the entire five-year term without scheduled principal amortization. No lender or additional capital partners were disclosed in connection with the transaction.
Scottsdale Towne Center is reported to be nearly fully occupied. The tenant roster is led by national and regional retailers, with TJ Maxx, Ross and Mountainside Fitness serving as anchor tenants. The center is also shadow-anchored by a Target store, which, while not within the center itself, contributes to drawing customer traffic to the surrounding retail environment.
Following the sponsor’s 2021 acquisition, a major lease-up initiative helped reposition the asset. A previously vacant 50,000-square-foot box was leased to Mountainside Fitness for its flagship location. This large-format fitness tenancy played a key role in driving occupancy to nearly 100%, which in turn helped position the property for the newly completed refinancing. The timing of the loan indicates that the sponsor moved to lock in fixed-rate, interest-only financing once the center’s occupancy and tenancy profile had stabilized.
Scottsdale Towne Center’s location within Scottsdale Airpark situates it in a significant employment hub, which can benefit retail performance through daytime population and household spending in the trade area. The article notes that Vestar showcases the property on its website, but does not explicitly identify Vestar as the owner or operator of the center. Overall, the transaction reflects ongoing lender and investor interest in well-leased, grocery- and soft-goods-anchored retail in established employment and retail corridors.
