Caliber Eyes Entertainment-Centric Phoenix Project

Image by Lorenzo Cafaro via Pixabay.com

Caliber has paved the way for the creation of Riverwalk, a mixed-use project in Scottsdale, Ariz., with the closing on the acquisition of the lease rights for 100 acres. The firm purchased the ground lease for the entertainment-centric endeavor from The Alter Group.

Riverwalk will sprout up in the Salt River Pima Maricopa Indian Community on a site stretching along high-profile Loop 101. The land is also located in a Qualified Opportunity Zone. In addition to the right, title and interest for the Riverwalk site, the deal includes underlying leases for certain existing properties, including a 101-key Hampton Inn & Suites and the Topgolf entertainment venue. Both the hotel and the golf entertainment complex had been part of The Alter Group’s master-planned Riverwalk Arizona development.

READ ALSO: Behind Arizona’s Biggest Master-Planned Project

Caliber believes the demand for a mixed-use destination focused on entertainment already exists in the Scottsdale area. “Mixed-use spaces that offer experiences are a popular trend and many entities that offer those experiences have expressed interest in this location for years. However, Alter Group, an office developer, was not interested in bringing in this type of entertainment use,” Brian Snider, a senior vice president with Caliber, told Commercial Property Executive.

The project will also sprout up in a premier location, that will benefit from existing traffic and the if-you-build-it-they-will-come premise. “The location is quite large and adjacent to the [Salt River Pima Maricopa Indian] Community’s casino as well as the Topgolf venue, which draw large numbers of people,” Snider noted.

Caliber has not ironed out the specifics for Riverwalk, but the alternative asset management firm expects to divide the site into seven parcels to accommodate a variety of offerings. “At this point in the project, I can confirm that restaurants, family entertainment centers, experiential uses, and potentially a themed hotel are expected to be part of this development,” said Snider.

The project will likely not feature residential options, as the Salt River Pima Maricopa Indian Community only allows members of the tribal community to reside on community-owned land. And, as it stands, Caliber is not planning to incorporate office space in the development either, but nothing is set in stone. “The development of the north side of the property could incorporate some office as part of a larger use though no decision has been made yet,” Snider added.

Funds and partners

Caliber has designated approximately 78 acres of the Riverwalk project as one of the first investments through its Tax Advantaged Opportunity Zone Fund II LLC, a $250 million equity fund launched in August 2022. Among the first firms in the U.S. to establish a Qualified Opportunity Zone Fund, Caliber is also one of the most successful opportunity zone investors. The fund will also supply equity for vertical development on the site either in partnerships with developers or for developments sponsored by Caliber. One such partnership is already in place.

Platinum Advisors LLC, working with Caliber on the entertainment segment of Riverwalk, is no stranger to the site, having toiled for four years to help obtain the right to purchase the land lease. The company has committed to participating in the vertical development of some of the project’s parcels.

Local leaders are supportive of Caliber’s plans for Riverwalk. In a prepared statement, Chris Camacho, president of the Greater Phoenix Economic Council, expressed stakeholders’ common goal for the project, noting that the area will become the epicenter of entertainment for all age groups in Scottsdale and one of the top visited areas in the state once this development is complete.