Macquarie Asset Management, on behalf of investors, has contributed $US250 million in long-term financing to enable the development of Phase 1 of the Mosaic Quarter Sports Complex (Mosaic Quarter) in Tucson, Arizona.
Phase 1 of the Mosaic Quarter will include a professional grade iceplex with three rinks and seating for around 3,000 people and a multi-purpose indoor sports facility and events space to support a wide variety of sports including basketball, volleyball and soccer. The facility will feature on-site energy generation including an initial 1 MW solar installation as well as stormwater harvesting infrastructure.
After forecasted completion of Phase 1 in 2027, Mosaic Quarter is projected to support around 2,000 community jobs and generate $US8.3 billion of new local economic impact for the State of Arizona, City of Tucson, and the Regional Transportation Authority.1
The financing has been structured as a credit tenant loan (CTL), underpinned by a long-dated agreement with Pima County. This enables Pima County to unlock necessary capital for the development, while providing the facility with flexibility and operational autonomy.
Hugo James, a Managing Director at Macquarie Asset Management, said: "The Mosaic Quarter will be transformational for the local community, providing state-of-the-art sports and recreational facilities for the people of Tucson. We are proud to be able to support this development with a bespoke financing solution, and help get the first phase of this important project off the ground."
Macquarie Asset Management's Credit division launched its secure income real estate (SIRE) strategy in 2020, and has since helped to finance the development and operation of assets across the hospitality, education, local authority, and health sectors. This includes upgrades to the three hospitals across the UK midlands and alternative financing for a portfolio of ASDA supermarket sites in the UK. The Mosaic Quarter transaction marks both the team's first SIRE transaction in the US and the team's first CTL transaction.
CTL Capital acted as arranger for the transaction.
