Property Gallery 9 Photos

Camelback Arboleda SR-51 Access Camelback Corridor Renovated Courtyard Green Wall Main Lobby Elevator Lobby Tenant Lounge Main Entrance

THE OPPORTUNITY
The Hardest Word in Lending Right Now: Office

For the last few years, most lenders have stayed on the sidelines when it comes to office, and RRA has been cautious too. So when CBRE's Scott Peterson brought us a refinance on a four-story office building on Camelback Road, the first question was simple: how do we get comfortable with office?

The answer came down to three things: the location, the business plan and the sponsor. This deal checked all three.

The sponsor, a repeat RRA borrower, bought Camelback Arboleda in 2018, when it was in the low 60s percent occupied. Over the next several years they invested about $8.5 million in renovations, modernizing the common areas, restrooms, lobbies, corridors and landscaping. Then they did something most office owners haven't pulled off lately: they lured a national anchor tenant to the building on a long-term lease. By the time the deal reached us, the property was 96% occupied and producing strong cash flow.

The building was in great shape. The office sales market wasn't. The sponsor's plan was to sell eventually, but not into a market still coming off its lows. They needed to refinance their existing debt, buy more time and keep leasing capital on hand as tenants rolled.

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THE PROPERTY
In Our Own Backyard

Camelback Arboleda sits at 1661 E Camelback Road, just down the street from RRA's Phoenix office. We know the submarket, we know why tenants choose to office there, and we know the brokers who lease and sell buildings like this one. We used those relationships to dig deeper before we committed.

The four-story, 189,241-square-foot building was built in 1982 and 1985 on 6.76 acres. The site was once home to Berridge Nursery, and its towering eucalyptus trees still line the property. The historic Duck and Decanter has operated next door since 1992.

The building offers:

• Floor plates of more than 45,000 square feet, plus move-in-ready spec suites
• An attached parking garage with skybridges into the 2nd and 4th floors, and 755 parking spaces in total
• A renovated courtyard and atrium, private balconies and new outdoor tenant space
• A fitness center, conference center and tenant kitchen
• Direct access to State Route 51, Camelback Road and Highland Avenue

The Camelback Corridor sits between downtown Phoenix and Scottsdale, so tenants can draw talent from across the Valley. It's rare to find an office building with this much freeway access and this many amenities nearby: more than 2 million square feet of retail within 2 miles, including Biltmore Fashion Park and the Camelback Colonnade.

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THE RRA SOLUTION
Certainty Over the Cheapest Rate

RRA provided a $32,035,000 non-recourse bridge loan with a two-year initial term and two 6-month extension options. The initial funding refinanced the existing debt. The rest is a follow-on facility for tenant improvements and leasing commissions, including a portion the sponsor can use to build spec suites before leases are signed, so vacant space can be marketed move-in ready.

This is our fourth loan with this sponsor, all office, all performing well, and they told us they were willing to pay a little more for the speed and certainty of execution they'd seen on those earlier deals. Because the relationship was already there, both sides understood each other's priorities and got to an answer quickly.

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WHY WE LIKE IT
One of Our Least Risky Deals, at the Right Point in the Cycle

With a high-quality building, a proven sponsor, strong in-place cash flow and a conservative position in the capital stack, we see this as one of the lowest-risk loans in our portfolio. It's also one of the largest investments RRA has made to date.

We don't move in and out with the tide. We believe office capital markets are at the front end of a recovery, and this loan puts us in a well-leased, well-located building at the right time.

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LOAN STATUS
Active

The loan closed on November 6, 2025 and is currently active. The property remains more than 90% leased, with long lease terms going forward, and the sponsor is continuing to lease space and renew tenants as their leases roll.

This case study will be updated when the loan pays off.