$1.8B Phoenix Mixed-Use Lands Financing

McBride Cohen, Cantor Fitzgerald and Silverstein Properties secured the construction loan.

South Pier Tempe Town Lake

South Pier Tempe Town Lake. Rendering courtesy of McBride Cohen Co.

McBride Cohen Co.Cantor Fitzgerald and Silverstein Properties have closed on a $233 million construction loan for the development of the first phase of South Pier at Tempe Town Lake, a large mixed-use master-planned development in Tempe, Ariz., in the Phoenix area. Funding came from Banco Inbursa and Pearlmark. The first phase includes 724 rental units and 26,000 square feet of retail.

The Davis Experience is the project’s architect and Clayco serves as general contractor. The development broke ground in January 2023 and expects completion by the spring of 2026. McBride Cohen Co. paid $36.5 million for the land, and the city of Tempe will pay $25 million in government property lease excise taxes, while the developer is to pay $27 million for affordable housing and other public amenities, as reported by KTAR News.

The three towers in the initial phase will rise 22-, 23- and 24-stories high and will include one-, two- and three-bedroom apartments, along with retail. Resident amenities are slated to include fitness centers, swimming pools and spas. This phase will also include The Central Green, a 2-acre public park, along with the South Pier Isle Entertainment District, a waterfront hub of dining and nightlife options. It will also feature a four-story garage with 836 parking spaces.

An expansive mixed-use project in Tempe

The project is divided into seven phases expected to bring online 18 buildings. Future additions are slated to include thousands of residential units, along with two hotels, a multi-acre entertainment district, an observation wheel and more than 600,000 square feet of high-rise office space. The project has an estimated cost of $1.8 billion, as reported by Commercial Property Executive, and will be constructed in eight to 12 years.

Located at 1190 Vista Del Lago Drive, the site is less than 2 miles from downtown Tempe and roughly 12 miles east of Phoenix. It is also adjacent to the main campus of Arizona State University and near the Novus Innovation Corridor, a 330-acre mixed-use project developed by ASU. The property will also be within walking distance of the Mill Road entertainment district.

The Cantor Silverstein Opportunity Zone Trust represents a joint venture between Cantor Fitzgerald and Silverstein Properties for development of assets in Qualified Opportunity Zones. The entity recently secured a $165 million loan for the construction of a 11-story mixed-income community in Queens.

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