TEMPE, ARIZ. — The McBride Cohen Co. has secured a $53.2 million mezzanine debt investment to develop the first phase of South Pier at Tempe Town Lake, a waterfront project on Tempe Town Lake in Tempe. The mezzanine debt investment loan was originated by Pearlmark on behalf of Pearlmark Mezzanine Realty Partners and a commingled investment vehicle managed by Waterton. Pearlmark is a Chicago-based investment firm that targets domestic core to value-add real estate opportunities. Waterton is a property investment and management company with a focus on multifamily, senior living and hospitality properties.
Banco Inbursa, a Mexico City-based bank, provided the financing loan. Cantor Silverstein Opportunity Zone Trust, a joint venture between Silverstein Properties, Cantor Fitzgerald, and McBride Cohen, funded all equity required of the first phase. Tom Wilson of Jones Lang LaSalle advised the project sponsors on this capitalization.
South Pier comprises 18 acres and 3.2 million square feet to be built in seven phases. At full build-out, the project will offer 18 total buildings, including thousands of housing units, 600,000 square feet of high-rise office space, two hotels and an entertainment district providing dining, retail and entertainment venues, as well as an 80-meter-tall observation wheel.
Construction on the first phase began in January and is slated for completion by Spring 2026. The first phase of South Pier will consist of 724 units across three towers, as well as parking garage with 850 spaces, 280 spaces of surface parking and 26,500 square feet of ground-floor retail space. The Davis Experience is the architect and Clayco is the general contractor.