AEW Capital Management Lends $68M for Tempe Industrial Park Construction

Overton Moore Properties and Invesco Real Estate (IVZ) have secured $68 million in construction financing to build Nextwave Tempe, a three-building, Class A industrial site spanning 689,000 square-feet in Tempe, Ariz., Commercial Observer has learned. 

Real Estate Daily reported on Jan. 10 that OMP and Invesco started construction on the site. 

AEW Capital Management supplied the construction financing through the firm’s AEW Debt Platform, which opened in 2011 and has originated $6.5 billion in loans since.  

Located at 1500 North McClintock Drive, Nextwave Tempe sits on the 35-acre site that used to house Big Surf Waterpark. The development is the first large-scale industrial project to be built near Phoenix’s Sky Harbor Airport in the last 20 years. It’ll be near both Arizona State University and downtown Tempe, with a surrounding area featuring 3.2 million potential customers accessible from the Arizona State Loop 101 and Loop 202 freeways. 

Justin Pinckney, AEW’s head of private debt, said in a statement that the $68 million construction loan “offers excellent credit quality and a clear relative value to fixed-income alternatives.”

Kyle Seminara, AEW’s head of originations, called OMP a “highly reputable developer,” and described Nextwave Tempe as “a state-of-the-art industrial park that we believe will be well-positioned within Phoenix’s dynamic industrial market.”

Construction is expected to be finished by the fourth quarter in 2025. 

Brian Pascus can be reached at bpascus@commercialobserver.com