Article Originally Posted by PhoenixBusinessJournal on August 22, 2022
CaliberCos. Inc. is looking to bring new commercial development along the Loop 101 near Scottsdale and the Salt River Pima-Maricopa Indian Community.
The Scottsdale developer is nearing closing on a land lease that would allow it to be the master developer of 78.6 acres in an Opportunity Zone near Topgolf and Talking Stick resort. The plan for what that commercial development will look like remains in flux, Caliber officials said, but the developer considers this project, known as The Riverwalk Development, as the kick-off to its second Opportunity Zone fund.
Caliber's investor pool is made up of high-net-worth individuals. Those investors will have their funds spread out over the projects Caliber pursues through this $250 million fund.
"We think we're going to raise the [money] over the next two years," Caliber CEO Chris Loeffler said. "Every time they're investing, we're taking that capital. ... And when we have enough cash to close on a project, we close on the project."
To finance the land acquisition, Loeffer said Caliber will take some remaining cash from its first fund, which raised $184 million. Caliber had been working on getting the second fund ready for the past six months before its launch in July.
The second fund will also finance the vertical portion of The Riverwalk Development. Loeffler said Caliber is waiting on final approvals to close escrow on the land. He anticipates that taking place soon.
As it closes on the land lease, Caliber is seeking feedback from the Salt River Pima-Maricopa Indian Community and residents of nearby Scottsdale for what the community wants for The Riverwalk Development. Generally, Loeffler sees entertainment uses near Topgolf and the Hampton Inn Suites to the south end of the land. On the north side, Loeffler thinks a corporate office innovation campus and a sports use to tie in with the nearby Banner Health sports medicine center under construction.
"We've been avoiding making any individual commitments. We're just trying to get this thing done. At this point in time, we're very close to the closing," Loeffler said.