Non-Recourse Loan on Arizona Mixed-Use Property

Scottsdale, Arizona - Commercial Loans reports today is coming from the beautiful city of Scottsdale. A commercial property, mixed-use project is getting a commercial loan for $70 million. This commercial loan is permanent financing used to help facilitate the acquisition of Scottsdale Quarter.
The Retail real estate investment trust, Glimcher Realty Trust, has cemented their ownership position of the Scottsdale Quarter, mixed-use project. This Commercial Real Estate used to secure the commercial loans is in north Scottsdale.

This Investment Property, Scottsdale Quarter is located east of Scottsdale Road across from Kierland Commons. The first phase opened in 2009 and includes Tenants such as H & M, Williams Sonoma Home, Apple, Oakville Grocery and Brio Tuscan Grill, as well as others. Phase 2 of this commercial real estate project is scheduled to open this fall. It will include a variety of boutique retail and restaurants, including Nike and True Food Kitchen. Currently undeveloped land, Phase 3 of commercial real estate project is yet to be determined.

The plan for Phase 3 has yet to be determined. It’s currently undeveloped land but could include office, hospitality, residential and retail.

This commercial loan helped Glimcher’s purchase of the land under Phases I and II of Scottsdale Quarter and allowed the REIT to consolidate the leasehold and fee positions. Reports have it that the "REIT" Real Estate Investment Trust purchased the fee simple interest to roughly 14.5 acres from Sucia Scottsdale LLC for $96 million.

Commercial Mortgage Lenders arranged this commercial loan with nice terms of five-years, and a non-recourse loan with a rate of 4.91% percent. The conduit loan is secured with collateral of the ground lease on the 600,000 square-foot Scottsdale Quarter.

A Non-Recourse Loan has many benefits. With a Non Recourse Loan, you are only responsible for the collateral associated with the Loan / Mortgage. If you default on the Loan, you lose only the Investment Property, the collateral. If the value of the asset dropped during the period of the Non-Recourse loan, the difference between the value and the loan does not have to be re-paid. In that case, the lender would be responsible for the debt.