Peachtree Refis Arizona Industrial Development With $52M Loan

Shopoff Realty Investments has sealed a $52 million loan to refinance a newly built industrial project in suburban Phoenix, Commercial Observer has learned.

Peachtree Group originated the bridge loan for Shoproff’s planned 270-acre The Block at Elliot development at the intersection of East Elliot Road and South Sossaman Road in Mesa, Ariz. 

Shopoff acquired the former dairy farm property in September 2022 before receiving zoning approval changes from the Mesa City Council in July 2023. 

Nisu Mehta, senior vice president of commercial real estate credit at Peachtree Group, said the loan will enable Shopoff to move its project forward with funding for grading, utility improvements and other infrastructure work. He said the project is well positioned to attract industrial tenants with its location close to Mesa Gateway Airport and large corporations nearby including Google, Amazon, Meta, Apple and Lowe’s. 

“This is one of the last locations in that area for industrial development,” Mehta told CO. “Long term, we are very bullish about the Mesa market with the metrics very solid.”

Mehta said strong sponsorship led by William A. Shopoff, founder, president and CEO of the developer, also added to the attractiveness of the deal. Mehta noted that Shopoff has guided the firm for nearly half a century, overseeing in excess of 1,000 property acquisitions.

It’s not known when Shopoff will begin construction, but Mehta said the developer will likely sell pad sites at the property to industrial owners over the next 24 months. He noted that there is strong demand in the area for manufacturing, warehouse and data centers creating a wide scope of potential users.

Officials at Shopoff Realty Investments did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com