Los Angeles and Phoenix, Ariz. –Equus Capital Partners, Ltd. (“Equus”), one of the nation’s leading private equity real estate fund managers and iStar Inc. (“iStar”), announced today the formation of a joint venture to complete the $53,150,000 acquisition of McDowell Mountain Business Park in Scottsdale, AZ.

McDowell Mountain Business Park is a premier Class A office complex comprised of two identical three-story office buildings totaling 255,573± rentable square feet, located at 16425 and 16552 N. Pima Road, Scottsdale, Arizona.  Mesa West Capital has funded $42.6 million in first mortgage debt for the acquisition of the project.  The venture acquired the REO property from RAIT Financial Trust

McDowell Mountain Business Park was built in 2006 and 2007.  The property was 74% leased at acquisition to a diverse group of tenants. This upscale property is situated in a prime central location on the Loop 101 just north of Frank Lloyd Wright Blvd, providing easy access, excellent visibility and exposure.  Each L-shaped building offers expansive common areas with upscale finishes and floor plates that allows for maximum flexibility in layout and design.  In addition to its mountain views, the amenity-rich office complex is just minutes from a variety of nearby resorts, hotels and golf courses. A wide range of restaurants and retail stores are also nearby, and the buildings are only three miles from the Scottsdale Municipal Airport.

“We are pleased to expand our relationship with iStar and look forward to implementing our business plan on another well-located and high-quality project,” said Jonathan Praw, who oversaw the transaction. Praw, a Senior Vice President and Head of West Coast Operations for Equus, is based in the firm’s Los Angeles office.

This is the second joint venture for Equus and iStar in the Scottsdale market. The venture also owns Raintree Corporate Center, which is currently 95% leased, up from 51% at the time of acquisition in September 2015.  Raintree Corporate Center is a mile south of McDowell Mountain Business Park.

“We are excited to partner once again with a highly respected group like Equus. This opportunistic acquisition positions us to capitalize on the success we’ve had with our existing Raintree asset, with an attractive investment alongside a best-in-class owner,” said David Sotolov, Executive Vice President and Head of West Coast Investments, who oversaw the transaction for iStar.

“Equus and iStar are strong sponsors with a demonstrated track-record in the Scottsdale submarket,” added Jason Bressler Mesa West Vice President who originated the financing.
iStar has invested in Class A office, retail, industrial and residential projects in the greater Phoenix market for more than two decades.  This joint venture was made on behalf of Equus Investment Partnership X, L.P., a discretionary fund managed by Equus. Affiliates of Equus also own Scottsdale Gateway I, a 106,931-square-foot office building, and 92 Mountain View, a 116,200-square-foot office building, in the Scottsdale area.

Bryan Taute, Jim Fijan and Will Mast with CBRE’s Phoenix office headed the negotiations on the transaction between Buyer and Seller. Bryan Taute has also been appointed to spearhead leasing and marketing activities for the property.  Mesa West Capital’s five-year floating rate interest only loan was arranged by Rocco Mandala with CBRE in the firm’s Phoenix office.

Phoenix, AZ – CBRE announced it has arranged the joint venture between Equus Capital Partners, Ltd. (“Equus”) and iStar for the ownership of Raintree Corporate Center, a premier Class-A office complex located at 8800 and 8888 E. Raintree Drive in Scottsdale, Arizona.

Bryan Taute with CBRE’s Phoenix office and Kevin Shannon and Brad Burton with CBRE’s El Segundo office negotiated the transaction between Equus and iStar. Bryan Taute also has the marketing and leasing assignment on the property.

Equus is headquartered in the Philadelphia-area and is one of the nation’s leading private equity real estate fund managers; iStar is a publically traded REIT headquartered in New York City. An affiliate of Equus will enter the joint venture as the managing partner, working closely with CBRE brokers to implement an aggressive leasing strategy for the property.

“We are thrilled to be partnering with iStar on a trophy office asset in the Scottsdale market. We look forward to implementing our business plan and re-introducing the property to the brokerage community” said Jonathan Praw who oversaw the transaction for the firm. Praw who is Vice President and Head of West Coast Operations for Equus is based in the firm’s Los Angeles office.

“We are excited to partner with highly respected group like Equus. The joint venture allows us to capitalize on market and property-level improvements during our period of ownership, and align ourselves with a best in class owner as we lease-up the project to full stabilization” said David Sotolov, Senior Vice President and Head of West Coast Investments, who oversaw the transaction for iStar.

Strategically located on Loop 101 just north of Shea, Raintree Corporate Center is a 345,000 SF class A office complex that provides easy access and excellent visibility. The property offers tenants flexible floor plans, parking ratios in excess of six per 1,000 square feet, proximity to upscale retail and residential options. Serving as headquarters to Meritage Homes since 2014, Raintree Corporate Center is currently 51 percent leased and can offer up to 140,000 SF of contiguous space.

“We have already started working on an aggressive strategy that focuses on attracting large corporate users. Based on the above market parking ratio, freeway visibility, quality of the common areas, and proximity to amenities, Raintree is well positioned to lease-up quickly,” said CBRE’s Taute.