background-Luxe Scottsdale

Luxe Scottsdale

Front view of building

Luxe Scottsdale is a mortgage which will provide financing for the acquisition of a 218-unit mid-rise apartment community built in 2015 in Phoenix, AZ, located in the high-performing and highly desirable Scottsdale submarket. The property offers upscale living near Old Town and sits close to Chestnut Park.

The mortgage will be a structured financing execution in which the REIT originates a whole loan and then sells the A-Note, retaining the higher yielding B-Note.

The borrower will be a 95/5 joint venture between Oaktree Capital and TruAmerica Multifamily. Oaktree and TruAmerica have teamed up previously to acquire multi-family in the Southeast, Nevada, and Arizona. The Sponsor is well-respected and well-known to Nuveen Real Estate.

Affluent demographics, high barriers to entry, and overall demand in the downtown Scottsdale submarket will continue to fuel strong multifamily fundamentals for the community, consistent with the REIT’s strategy to invest in floating rate, yield-driven mortgages with underlying real estate which gives us high conviction.

— Richard Kimble, Portfolio Manager
Further Information:
Global city:

Phoenix is a “Tomorrow’s City” and a target market for the REIT, providing increased diversification in the West region. Over the near term, Phoenix’s favorable demographics and strong growth relative to the national average are projected to continue.

Downtown Scottsdale is Phoenix’s largest entertainment corridor with over 100 local restaurants, shops, art galleries, and nightlife venues. Diverse amenities and abundance of cultural attractions in a walkable environment perpetually distinguishes downtown Scottsdale from other neighborhoods in Phoenix and appeals directly to a growing high-end resident demographic in Scottsdale.

Luxe Scottsdale’s central location is less than a mile from the Loop 101 and provides residents with direct-access to high-wage employment hubs throughout Metro Phoenix’s rapidly expanding technology and finance sectors from Scottsdale and the Camelback Corridor to Tempe and Chandler.

These properties represent select holdings at the time of publication and are not meant to represent the entire portfolio. The opinions expressed are reflective of the manager's views at the time of acquisition.