Square Mile Provides $84M Construction Loan for Arizona Multifamily Asset
By Cathy Cunningham December 13, 2021 10:10 am
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Square Mile Capital Management has provided an $84 million loan for the ground-up development of Waterview Scottsdale, a 260-unit multifamily asset in Scottsdale, Ariz., Commercial Observer has learned.
JLL (JLL)’s Jeremy Womack negotiated the debt.
The project, at 4518 North 73rd Street, is being developed by an entity affiliated with Steven Yari and Shawn Yari. The brothers have been actively involved in the development, acquisition and management of real estate assets for the past three decades, and specialize in the repositioning of projects in southwest markets.
“This transaction represents a compelling opportunity to provide construction financing to an experienced sponsor with a strong local presence in both Scottsdale and Phoenix,” Tom Burns, a principal at Square Mile, said. “We expect the project to be well-received by the market upon delivery in August 2023, given its expansive amenity package, proximity to major employers and Scottsdale’s continued population growth. We are very excited to announce our first debt investment with this sponsor.”
The property sits in the Old Town submarket of Downtown Scottsdale. The city has seen a big surge in investor interest over the past few years, and for good reason. It was crowned the top place to find a job by WalletHub in both 2019 and 2020 (it came in at No. 6 in 2021), and saw meteoric rent growth this year, making it the 10th most expensive rental market in the U.S. in September, according to Inman.com.
No strangers to the market, the Yari brothers are managing principals of Stockdale Capital Partners, with several Scottsdale properties in their portfolio, including a 372,000-square-foot creative office and research and development building at 7201 East Henkel Way, and Galleria Corporate Center, a 537,110-square-foot Class-A office building in downtown Scottsdale.
They are also behind the development and operation of the city’s W Hotel and Aloft Hotel, and have created — through the assemblage of several parcels in downtown Scottsdale — what is now known as the city’s entertainment district.
Shawn and Steven Yari couldn’t immediately be reached for comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com.
