May 30, 2023
Construction of Mountainside Fitness Facility at Park 10 Development in Avondale Commences with Long-Term Lease in Place and Fixed Rate Construction Loan
Phoenix, Ariz. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $7.65 million of construction-to-permanent financing for the development of a new 40,000-square-foot retail building that is 100% leased to Mountainside Fitness, a health club operator with 19 Phoenix Region locations. The property is situated within the Park 10 mixed use project in Avondale, a West Valley suburb of Phoenix.
Park 10 is a 43-acre master-planned project near major regional developments like Arizona Cardinals Football Stadium, Westgate Entertainment District, Phoenix International Raceway, and multiple major hospitals at the confluence of I-10 and the 101 Loop. When complete, Park 10 will encompass approximately 424,000 square feet of mixed-use commercial space offering entertainment, hotels, restaurants, retail, and medical office uses.
Gantry’s Adam Parker, Principal, and Chad Metzger, Senior Associate with the firm’s Phoenix production office secured the loan on behalf of the borrower, a private real estate investor. The 5-year fixed rate loan was arranged via a regional bank with deep ties to the Phoenix Region. The fixed rate loan features an interest only period during construction, transitioning to 25-year amortization. This is Gantry’s third successful financing for the developers of Park 10.
According to Gantry’s Adam Parker, “Despite turbulent market conditions, we were able to secure a fixed rate construction loan for the Sponsor. It was critical that we source a fixed rate construction loan as it allowed us to secure a higher loan amount in comparison with other variable rate construction loan options. With having construction costs on the rise, the higher loan amount via the fixed rate construction loan was paramount in making sure this project was able to move forward.”