CBRE arranges $45.8M refi for Scottsdale Towne Center

CBRE Capital Markets' debt and structured finance group arranged a $45.8 million refinancing for Scottsdale Towne Center, according to Connect CRE. The retail center sits at 15444 North Frank Lloyd Wright Boulevard in Scottsdale, Arizona. It spans 168,090 square feet.

Nearly fully leased, the center counts TJ Maxx, Ross and Mountainside Fitness as anchors, with Target as a shadow anchor. The loan runs five years at a fixed rate with full-term interest-only payments. Shaun Moothart, Bruce Francis, Doug Birrell, Bob Ybarra and Nick Santangelo of CBRE Capital Markets handled the deal.

The sponsor, unnamed in the report, bought the center in 2021. At the time, a 50,000-square-foot space sat empty. Mountainside Fitness now occupies it as a flagship. That lease pushed occupancy to nearly 100% and opened the door to refinancing, the report says.

The center sits at the Loop 101 and Frank Lloyd Wright Boulevard interchange. Scottsdale Airpark, where the property is located, is Arizona's second-largest employment corridor, according to the report.

The five-year, full-term interest-only loan means the borrower makes no principal payments along the way; the entire balance comes due at maturity. That cuts the current annual payment and defers the whole loan to a refinancing down the road. A lender would only accept that if it expects the center's value to hold up. The shadow Target and the flagship gym give the income stream its variety, and near-full occupancy keeps it dependable.

The report does not name the lender or the loan-to-value ratio, so the full pricing picture is unclear. The terms themselves suggest a lender comfortable with the income stream and a sponsor who had already filled the vacancy.