BWE, a national commercial and multifamily mortgage banking company, announced today that it has secured a $425,000,000 credit-tenant lease to provide construction financing for Phase I of Mosaic Quarter, a planned sports and entertainment destination which will span 90 acres and 1 million square feet in Tucson, Arizona.
Brian Boland, vice president in BWE’s Charleston, SC office, originated the credit-tenant lease financing for the development from CTL Capital on behalf of Mosaic Quarter Development LLC, an affiliate of Knott Development Inc. Because the property was underwritten based on the credit of Pima County, AZ, the future lessee, the borrower was able to secure more favorable terms with higher leverage due to the property’s guaranteed future cash flow over the term of the 30-year lease.
“When our client approached us with this landmark opportunity to help broaden Tucson’s sports and recreation landscape through the development of Mosaic Quarter, we knew we couldn’t leave any stones unturned in the search for the best financing solution,” said Boland. “We took the time to determine the strengths of the borrower and understand the specialized lending environment for a project of this scale, and by leveraging BWE’s deep relationships with a variety of capital sources, we were able to find the ideal lender and obtain the optimal loan terms for the borrower by taking advantage of their long-term lease with Pima County, allowing them to break ground as soon as possible.”
Phase I of Mosaic Quarter will consist of a 137,000-square-foot field house (to be known as “MQ Field House”), a 200,000-square-foot iceplex (“MQ Iceplex”), a central utility plant (“CUP”), on-site civil and sitework improvements, as well as the off-site infrastructure improvements necessary to support the larger project, including parking.
With its interchangeable wood, turf, and specialty flooring systems, MQ Field House will boast two floors of athletic space and include eight basketball courts, six volleyball courts, four indoor soccer fields, 24 pickleball courts, two 7-on-7 football fields, 32 badminton courts, two party rooms, and a rooftop event patio. As part of a local partnership, MQ Field House will offer fitness programming to elementary-aged children taught by University of Arizona and Pima Community College students.
Designed to accommodate the community’s need for ice rink space in Pima County, MQ Iceplex will feature two community rinks, a 3,000-seat arena rink, 15 locker rooms, two party rooms, a pro shop, and a team store. The facility is currently set to host three nationally marketed hockey tournaments in 2026 and eight tournaments in each following season. In addition, MQ Iceplex will be the new home of the University of Arizona’s Wildcat Hockey program.
Mosaic Quarter is scheduled to break ground in November 2024, and construction is expected to take approximately three years to complete.