Property Gallery 9 Photos

The HUB Solar Canopy Site Aerial Exterior Outdoor Workspace Covered Walkway Glass Roll-Up Doors Open Floor Plan Main Entry

THE OPPORTUNITY
A Finished Conversion With No Tenants Yet

The sponsor, Capital Hall Partners, had already done the heavy lifting. They bought a 1960s industrial warehouse in 2019 and spent the next year rebuilding it into The HUB, a Class A creative office building. By the time they came to RRA Capital, the renovation was finished, but the building was 100% vacant and the existing loan needed to be refinanced.

They needed a lender willing to finance an empty building, carry it through lease-up, and fund the build-out for incoming tenants. RRA closed the loan on January 6, 2022, and the sponsor added fresh equity at closing.

THE PROPERTY
A Healthy, Sustainable Office Campus in Tempe's Maker District

The HUB is a 50,366-square-foot, single-story building on 4.3 acres at the corner of Hardy Drive and Alameda Drive. It sits in the Tempe Maker District and a Qualified Opportunity Zone. The building is made up of a 33,600-square-foot west wing and a 16,766-square-foot east wing, so it can be leased to one tenant or split in two.

The redevelopment was built around sustainability and tenant health:

• A 14,000-square-foot outdoor workspace shaded by a 167-kilowatt solar array, designed to offset most of the building's electricity use
• Glass roll-up doors and new high-efficiency windows that bring in natural light and fresh air
• New rooftop HVAC units with improved air exchange and filtration, plus touchless fixtures
• A new reflective roof, drought-tolerant landscaping and a pervious parking lot
• 20-foot ceilings and fiber-ready infrastructure

The location is strong. The site is less than a mile from Interstate 10, about 1.5 miles from Arizona State University's main campus, and close to State Route 143 and Loop 202. Neighbors include a 780,000-square-foot warehouse leased to Lucid Motors, across the street, and an office building partially leased to Amazon, just down Alameda.

THE RRA SOLUTION
A Non-Recourse Bridge With Built-In Leasing Capital

RRA provided an $8,400,000 non-recourse, interest-only bridge loan with extension options. The initial funding refinanced the existing debt and set up interest, tax and insurance reserves to carry the property while it was vacant. The rest was a follow-on facility dedicated to tenant improvements and leasing commissions, so the sponsor had capital ready as soon as leases were signed.

THE EXIT
Repaid in Full

The sponsor repaid RRA's loan in full on July 25, 2024, about two and a half years after closing.

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