Old Town buildings with apartments or offices over street retail are the Scottsdale mixed-use file sponsors actually mean. A ground-floor restaurant with a few residential units is not the same loan as a larger residential project with a token shop. Capital Market Funds does not have a mixed-use program. The dominant use, the percentage of income, and how the leases are written pick Fannie Mae or Freddie Mac, life company, bank, or bridge.
The Block at Pima Center is Class A+ multi-tenant retail, 37,958 NRSF, $14,500,000, acquisition on a ground lease, 2022. It is not mixed-use, and we will not relabel it. No mixed-use tombstone is published. Arizona mixed-use is the statewide page. Airpark flex is industrial. We are not a Fannie Mae DUS lender when the residential piece is large enough for agency.
When agency is even a candidate
Agency is a candidate only when the residential income fits a Fannie Mae or Freddie Mac program and the commercial piece is inside that program’s limit. A Scottsdale building that is mostly a restaurant is life company, bank, CMBS, or bridge. We will say which one after the rent roll, not before.
If neither box will take the split, bridge is the transitional answer. It is not a blended structure that lets both uses be ignored.
Ground leases and Old Town
Pima Center’s ground lease is a retail fact. An Old Town mixed-use building may sit on fee simple or on its own ground lease. Those are different loans. Do not assume the Pima Center structure applies on Scottsdale Road.
Send the income by use: residential versus commercial, occupancy, and which use you think dominates. The form is not an application. Craig is at Suite 255.
Scottsdale mixed-use: Split the rent roll before naming a program
The Loop 101 runs through Scottsdale, and Shea Boulevard is the east-west road sponsors use for north Scottsdale medical and office. Mayo Clinic has an Arizona campus on Shea in Scottsdale. That is tenancy context for a medical building. It is not a claim that the clinic is a borrower. Source: Mayo Clinic Arizona.
Which income is which
Apartments over retail are not one program. Agency debt, if it belongs, is about the residential income. The retail is tenancy and rollover.
Do not force the whole building into agency
If the ground floor dominates the income, the file is a commercial loan: life company, bank, or CMBS.
Capital for Scottsdale mixed-use
| Source | When it fits |
|---|---|
| Fannie Mae | Only if the Scottsdale residential component fits. Not a DUS lender. Not Pima Center. |
| Life company | When the commercial income dominates and an insurer will hold it. |
| Bank and credit union | A smaller Old Town mixed-use hold. |
| Bridge | A split neither permanent box will take yet. |