Bank OZK, PGIM Provide $63M in Financing for Mack’s Arizona Industrial Project
Mack Real Estate Group and Chilean-based Lenga aim to build as many as 11 building of industrial and flex-office space on 124 acres
By Brian Pascus June 24, 2024 12:40 pm
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Mack Real Estate Group and its joint venture partner, Lenga, have secured $63 million in construction financing to build the first phase of a two-building industrial facility spanning 305,400 square-feet in North Scottsdale, Ariz. The multi-phase project is expected to eventually encompass more than 1 million square feet.
Bank OZK (OZK) provided $43 million in first-mortgage construction debt, while PGIM provided $19.7 million in mezzanine debt to finance construction.
A JLL Capital Markets team of Chris Peck, Brad Miner, Jason Carlos, Tyler Peck and Jarrod Howard arranged the transaction.
Known as Mack Innovation Park Scottsdale, the new industrial facility is expected to feature two-state-of-the-art buildings on 124 acres of land in this first phase and carry the capacity of at least 1.2 million square feet of new development across 11 industrial and flex-office space buildings as construction continues.
Richard Mack, CEO of Mack Real Estate Group, said in a statement that the project is buoyed by a Scottsdale market that has seen both limited new supply and consistent rent growth in new industrial buildings in recent months.
“We’re excited to break ground on our first phase with the support of construction debt from Bank OZK and PGIM Real Estate,” said Mack. “As a firm we remain bullish on Phoenix, with a large footprint of active projects across the Phoenix metropolitan surrounding area.”
Located adjacent to Highway 101 in North Scottsdale – roughly a 30 minute drive from downtown Phoenix – Mack Innovation Park Scottsdale will feature 516 parking stalls and buildings carrying 32’ clear heights, 53 dock-high doors, and 20 grade-level doors for trucks.
Mack Real Estate Group, a New York City-based firm, paid $125 million for the 124 acre site in 2022. Construction on the first phase of the industrial park is expected to be completed by the end of 2025, according to KTAR News, Phoenix.
Brian Pascus can be reached at bpascus@commercialobserver.com
