Scottsdale retail is underwritten to the tenants and the rollover. Pima Center is the proof we can show: Class A+ multi-tenant retail, 37,958 NRSF, $14,500,000, acquisition on a ground lease, 2022, prior firm. The collateral was the leasehold. We will not describe that card as if the sponsor owned the dirt.
Other Scottsdale retail — neighborhood centers, single-tenant pads, Old Town — is a new file. Life company, bank, or CMBS. Bridge if the leasing story is still a plan. Agency debt is the wrong label for a shopping center. The Airpark loan is flex industrial, not retail.
Ground lease changes the Scottsdale retail loan
Remaining lease term, rent resets, and who owns the improvements decide whether a lender will read a Scottsdale leasehold. Pima Center is why that question is asked first. A fee-simple center in Scottsdale is a different collateral package and should be described that way on the form.
The acquisition page for this card is Scottsdale acquisition. A later refinance of Scottsdale retail the sponsor already owns is Scottsdale refinance, which currently shows the industrial card, not Pima Center.
Retail that is not Pima Center
We do not have a second Scottsdale retail tombstone. Gilbert, Mesa, and Peoria centers are not given this $14,500,000 figure. Tenancy still decides the box: a grocery-anchored center and a building full of local shops do not go to the same lender on autopilot.
If the income is partly apartments, the file may be mixed-use rather than retail. Say the split. We will not recategorize Pima Center as mixed-use. The card says retail.
Scottsdale retail: Retail risks that change the source
- Loop 101 and Shea
- 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.
- Rollover
- Anchor, shadow-anchor, and a strip of local tenants are different credit. Life company and bank read the expirations. A center that is still leasing is not quoted as if it were full.
- Sales are not a cap rate page
- We do not publish a cap rate or a rent per foot. The rent roll and the leases are the file.
Capital for Scottsdale retail
| Source | When it fits |
|---|---|
| Life company | Stabilized Scottsdale retail, including a leasehold only when the ground lease works. |
| CMBS | Scottsdale retail proceeds a life company will not reach. |
| Bank and credit union | A Scottsdale center a portfolio lender will hold. |
| Bridge | A Scottsdale retail repositioning. Not the Pima Center acquisition. |