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.

LOS ANGELES, California– CBRE Capital Markets’ Debt & Structured Finance team announced that it has secured $57.7 million in financing for the acquisition of a 576-unit, Class B+ apartment community in Phoenix, Arizona.

Rocco Mandala, Anthony Valenzuela and Dominique Damerell of CBRE’s Phoenix office secured the seven-year loan with three years of interest-only payments on behalf of the borrower, an entity formed by Security Properties and Pacific Life Insurance Company. The loan was provided by Freddie Mac at 67% LTV.

“Freddie Mac’s financing reflected their Multifamily Green Advantage which provides better pricing, higher proceeds and energy savings for the borrower after committing to reduce energy or water consumption by at least 15 percent within two years of origination,” said Mr. Mandala, vice chairman, CBRE Capital Markets.

Located at 15801 South 48th Street, the Class B+ garden-style apartment community was constructed in 2000. Fifty-nine percent of the units were renovated between 2012 and 2017. Unit amenities include fully-appointed kitchens with name brand appliances, 9’ ceilings, full-size washer and dryer in each unit, private patios/balconies with outdoor storage, and spacious walk-in closets. Some units include built-in computer desks, vinyl plan flooring, double vanity in master bathrooms, roman tubs and attached direct-access garages.

Community amenities include three resort-style swimming pools and spa, poolside ramadas, resident clubhouse with full kitchen, coffee bar, flat screen televisions, gas fireplace, 24-hour fitness center, business center, dog park with washing station, and picnic areas with barbeque grills.

Phoenix, Arizona – CBRE Group, Inc. announced that Rocco Mandala has been promoted to Vice Chairman with CBRE Capital Markets, Debt & Structured Finance, in Phoenix. Since joining CBRE in 1995, Mr. Mandala has become a perennial top-10 percent originator nationally for CBRE Capital Markets, completing debt and equity transactions in excess of $7 billion.  In 2016, Rocco was in the top-3% originator for all disciplines nationally.

“I am proud to congratulate Rocco on his promotion to vice chairman,” said Craig Henig, senior managing director and market leader for CBRE in Arizona. “For more than two decades, Rocco has been an exceptional partner to Phoenix investors and a national leader within CBRE Capital Markets. His contributions have created winning opportunities for our clients in addition to delivering market-leading debt and equity financing solutions.”

Prior to working at CBRE, Mr. Mandala entered the real estate finance industry in 1984 as a producer for H.S. Pickrell Company and then Mellon Bank and Boston Mortgage Company. He has raised capital for a variety of property types, including multifamily, office, retail, industrial, condo-conversions, hotels, mobile home parks and self-storage, working with institutional lenders spanning life insurance companies, Agency Lenders (Fannie Mae, Freddie Mac, FHA HUD), pension funds, CMBS, opportunity funds and mezzanine lenders. Additionally, Mr. Mandala has extensive fee appraisal experience as a former Certified General Real Estate Appraiser in Arizona and in Massachusetts. He received a bachelor’s degree in finance from Arizona State University.