PIMA COUNTY, ARIZONA – The Pima County Board of Supervisors at its July 6 meeting voted 3-2 to approve the business plan and development agreement with Knott Development for new sports and entertainment venues and other commercial elements planned for the Kino Sports and Entertainment Complex.

The business plan outlines the project’s privately-funded financing structure and potential income from the amenities, which include an ice sports complex, field house with indoor multi-use courts, other indoor and outdoor sports and entertainment venues, parking garage, hotels, retail and dining space, a medical office building, multi-family housing, three distinct outdoor event and community plaza areas, and new connections to the Chuck Huckelberry Loop. The public-private partnership will generate revenue for the County, reduce the County’s financial risks associated with development and operation, and provide substantial regional economic development benefits.

Over the next 10 months the development, financial and operational aspects of the project will be further refined by Knott Development during a predevelopment work phase. The expansion will make Kino one of the Southwest’s premier venues for youth, amateur and professional sport, and cultural events. In addition, the project will generate jobs through construction of the Complex and operation of new hospitality, sport, and event facilities.

“I am proud to support this measure,” said District 1 Supervisor Rex Scott. “The development of the Kino Sports and Entertainment Complex will have extraordinary effects on the quality of life in Pima County, especially for our young people. The impact on economic development will also be substantial. The well-crafted business plan carries very little risk for the county or for our taxpayers, but the rewards for our citizens and the local economy will be significant and transformative.”

Last year, the County began a process of seeking a master developer partner to complete the Kino Complex south of Interstate 10 and east of Kino Parkway. The County selected a concept proposal by Knott Development, referred to as the Kino District.

“I will be in Tucson every other week as we develop and build this project,” said Frank Knott, President of Knott Development. “While creating the development plan, we spoke with, and listened to, local community groups and incorporated their ideas to enhance the long-term impact of Kino District for the community. Going forward, we are looking forward to working with school district boards and principals to solicit the best way for their students and families to access and benefit from Kino District’s facilities and programming. In addition, we will be hosting town hall type events for public input. Our goal is to weave the Kino District development into the fabric of all aspects of the local community.”

Deputy County Administrator Carmine DeBonis Jr. also emphasized the importance of community involvement through making the plans available to the public and providing opportunities for citizens to comment.

Kino Sports and Entertainment Complex today spans more than 300 acres, has a more than 5,000 parking capacity, 22 soccer fields, 10 baseball fields, five full-service clubhouses. When the Kino District project is completed, the Kino Sports & Entertainment Complex will serve as the most expansive youth and competition sports center in the region, attracting tournaments from the Southwest, Mexico and across the nation.

Details of the proposal are available here.

Debt funds continue to play important role in multifamily financing

Los Angeles, Calif. – Mesa West Capital continues its wave of multifamily origination activity funding $187.5 million in first mortgage debt secured by communities in Chicago, IL; Phoenix, AZ and Portland, OR.

Mesa West Capital provided an affiliate of Sares Regis Group with $53 million in first mortgage debt for the acquisition and repositioning of Level at Sixteenth, a 240-unit apartment property in Phoenix, AZ. As part of its investment strategy, Sares Regis plans to complete an extensive remodel of the property which — was built in 2010 — including renovations to the exterior and common areas in addition to interior upgrades to the property’s studio, one- and two-bedroom units.

“While in good condition, the property is of slightly older vintage than that of its surrounding competitive set,” said Mesa West Capital Vice President Danielle Duenas who led the origination team.  “Our financing enables the Sponsor to implement a capital improvement plan and reposition the asset to compete favorably with newer product, ultimately realizing a net increase in rents. The property also benefits from its proximity to strong submarkets including the Camelback Corridor and Midtown.”

The Los Angeles-based debt fund manager and portfolio lender also provided a joint venture between Chicago developer JDL, Harlem Irving Companies and funds managed by an institutional real estate manager, with an $85.2 million loan to refinance Eight Eleven Uptown, a 27-story luxury residential tower in Chicago’s Uptown neighborhood.  Brought to market in 2019 by JDL, the property located at 811 W. Agatite Avenue includes 273 multifamily units made up of studio, one-, two- and three-bedroom floorplans and eight fully leased townhomes.  Peter Rubi Fresh Produce has leased 21,000 of the 30,000 square feet of street-level retail space to operate an on-site grocery, which will open later this year.

“Leasing velocity at the property was brisk prior to the onset of the pandemic,” said Mesa West Capital Executive Director Matthew Sndyer, who originated the four-year, floating rate financing out of the private lender’s Chicago office.  “The property has seen significant leasing traction since COVID restrictions have been eased.”

Mesa West Capital also provided a $49.35 million first mortgage loan to real estate development and investment firm Holland Partner Group to refinance Kado Apartments, a recently completed 199-unit apartment development in the Slabtown neighborhood of Northwest Portland.  The seven-story residential building at 1378 NW 18th Avenue, features a mix of floor plans ranging from studios to three-bedroom apartment homes.   In addition to taking out the existing construction loan, proceeds from the five-year, floating rate loan will be used by the sponsor to stabilize the property, which was 85 percent occupied at loan closing.  Additionally, the sponsor will convert a portion of the existing street level retail space into three additional live/work units.

Josh Westerberg, a Director in the Mesa West Capital San Francisco office who originated the financing, explained: “The Northwest Portland submarket is a central commuter suburb that has experienced rapid development over the last decade. Slabtown in particular is well-located, with many residents either working in the neighborhood or commuting to adjacent Downtown Portland for work via public transit. While Northwest Portland provides great accessibility to the Downtown Portland core, many notable companies including Legacy Health, Adidas and WebMD also operate directly within the submarket.”

The financings are the most recent examples of how debt funds are adding to the increased liquidity for multifamily assets, particularly those with strong sponsorship, according to Principal Ronnie Gul.

“While the segment has fared well, it is still a market-by-market and asset-by-asset decision,” said Gul. “Capital is readily available to those sponsors who have successfully navigated the difficult period of increased concessions, rental and credit loss.  As concessions start to burn off and fundamentals improve, we will continue to place a heavy emphasis on multifamily assets in markets exhibiting strong job and population growth.”

The financings follow Mesa West Capital’s $40 million loan last month to finance the acquisition of a 309-unit apartment community in Austin.  Over the past 24 months Mesa West Capital has originated more than $300 million of loans  across seven multifamily assets in the Austin Metro alone.

TUCSON, ARIZONA — Geyer-Yunkherr LLC (Clay Geyer and Eddy Yunkherr, members) franchise owners of Black Rock Coffee Bar, purchased the former Gadabout SalonSpa site at 6393 East Grant Road in Tucson for $800,000 ($158 PSF) from the P.J. McNair-Wingate Revocable  Trust (Pam McNair, Trustee).

The popular Oregon-based boutique coffee chain has been expanding its presence in Arizona and just opened three new locations in Phoenix, Tempe and Scottsdale.

Known for its premium roasted coffees, teas, smoothies, and flavorful energy drinks, Black Rock Coffee Bar now has a total of 18 locations in Arizona – until now, all were based in the greater Phoenix metropolitan area. This will be its first location in Tucson.

Black Rock was founded in 2008 in Portland, Oregon, an area of the Pacific Northwest known for its coffee excellence.

The Phoenix-area additions bring to 81 the total number of company coffee bars in seven states, including Arizona, California, Colorado, Idaho, Oregon, Texas and Washington.

All three new Black Rock Phoenix locations were launched in March or April. No formal announcement has been made yet for the Tucson locations.

“After the northwest, Arizona is our second-largest market,” said Jeff Hernandez, co-founder and executive chairman of Black Rock Coffee Bar.

“When we look at markets, we look at the community, its culture, the people, their families, and determine if we fit in with that community. It really comes down to the feel of the place — and we were drawn to Arizona from the start. We feel we have established an authentic connection to the community.”

Rick Volk and Jeramy Price of Volk Company handled the transaction.

To learn more, see RED Comp #8901.