CBRE announced the $61.7 million refinance for Elevate 24, a Class-A office property in Phoenix.
CBRE’s Bruce Francis, Dana Summers, Shaun Moothart, Robert Ybarra, Doug Birrell and Tim Bokinsky facilitated the non-recourse bridge loan on behalf of the owner, Regent Properties.
Elevate 24, located at 4722-4742 N. 24th Street, is a premier 323,251 square-foot Class-A office property. The project is one of several of Regent Properties’ holdings in the Phoenix market and signalizes their ongoing confidence in the continuous growth and expansion of the regional office sector with new corporate users.
“Multiple lenders competed fiercely for this financing because of the outstanding sponsorship and asset quality, despite lingering challenges from the pandemic,” said Francis. “The loan was secured by a debt fund that provided a quick closing and flawless execution.” Added Summers, “The lending appetite signalizes that high-quality office properties strategically located in growth markets such as Phoenix continue to be considered desirable assets.”
Phoenix office net absorption in the first quarter was the third lowest in history with the vacancy rate climbing to 19.1%, according to CBRE research. Under construction space in the region totals 1.7 million square feet, 21.9 percent of which is pre-leased. Full-service gross asking lease rate decreased slightly to $28.07, the second highest ever recorded.