ACORE Capital Provides $46M Loan for First US ‘Car-Free Neighborhood’ in Arizona
Culdesac, Sunbelt Holdings and Encore Capital Management have nabbed a nearly $46 million construction loan for the joint venture’s multifamily “car-free neighborhood” property in suburban Phoenix, Commercial Observer has learned.
ACORE Capital provided the financing. The 60-month loan, which closed March 19, consists of a first mortgage and mezzanine debt.
Meridian Capital Group negotiated the transaction on behalf of Culdesac Tempe, a planned 761-unit apartment community with adjoining commercial space slated for completion in 2022. The development is described as having car-free urban design with 55 percent open space and infrastructure for biking, walking and shared mobility.
Located at 2025 East Apache Boulevard, near Arizona State University in Tempe, Culdesac Tempe is described as the nation’s first “car-free neighborhood built from scratch” with 55 percent open space infrastructure for biking, walking and shared mobility. In addition to luxury apartments, the complex will also include a restaurant, grocery store, coworking space, pool, guest suite and park.
“This is something that Culdasac, Sunbelt and Encore have a lot of conviction and we think it is an indication of the future of where housing and livability is trending,” said Encore COO Oscar Vasquez. “The loan contributes toward the completion of the project.”
Officials for ACORE and Meridian did not immediately respond to requests for comment.