Silver Creek Development has received bridge financing of $31.4 million. This serves to refinance an office complex occupied by a single tenant in a suburb of Phoenix. Obra Real Estate provided the loan for the developer's office property, built in 2021, located at 1715 West Elliot Road in Gilbert, Arizona. The complex is fully let to Northrop Grumman, a global aerospace and defence technology company.
Michael Bachenheimer, Managing Director at Obra Real Estate, commented on the transaction, stating that it reflects the continued focus on high-quality assets supported by institutional credit and experienced sponsors. He further emphasised that Obra's ability to act quickly and ensure transaction certainty represents a crucial competitive advantage, particularly for sponsors seeking flexible capital options in the current market environment.
Silver Creek had acquired the 120,294 square foot office building in early 2021 for $43.1 million from SunCap Property Group. Arrow Real Estate Advisors arranged the transaction with a team consisting of Morris Betesh, Eliott Zeitoune, Alex Bailkin, and Andrew Rosenberg. The property is located 20 miles south-east of downtown Phoenix in the 63-acre Gilbert Spectrum Business Park.
According to Arrow Real Estate Advisors, the property leased to Northrop Grumman is strategically well-positioned. This results from having a long-term tenant in one of the country's best-performing markets for corporate investment and employment growth. Morris Betesh, Managing Partner at Arrow Real Estate Advisors, stressed that the transaction underpins the ongoing demand for high-quality assets supported by institutional tenant credit and experienced sponsors. He added that Northrop Grumman's investment-grade profile, combined with the sponsor's track record and active market presence, made this an exceptionally attractive financing opportunity, which closed within 30 days.
The refinancing underscores the robustness of the office market in selected regions, particularly for modern, fully let properties with creditworthy tenants. The swift closing within one month of the process commencing highlights the efficiency and trust of the parties involved.
