Arizona Distilling Co. Opens Second Location in Downtown Mesa

Rhea-AI Summary

Caliber (CWD) brings Arizona Distilling Co. to Downtown Mesa, Arizona, as part of its investment and revitalization efforts. The new location features on-site production, a tasting room, and bar area, contributing to the growth and experience of Downtown Mesa. Caliber's Opportunity Zone Funds have played a key role in developing businesses in the area.

Insights

Market Research Analyst

The opening of Arizona Distilling Co.'s new location in Downtown Mesa, facilitated by Caliber's real estate investment and development, signifies a broader economic revitalization of the area. Analyzing the potential market impact, this development is poised to attract additional consumer traffic and stimulate local spending, which could, in turn, lead to increased property values and a more vibrant commercial real estate market. The focus on community-oriented businesses and affordable housing developments by Caliber reflects a strategic investment in creating a sustainable and attractive urban environment.

Furthermore, the involvement of Caliber's Opportunity Zone Funds in these projects is indicative of the growing trend in socially responsible investments that also provide tax benefits. This could potentially lead to a surge in investor interest, particularly from accredited investors seeking to capitalize on the Opportunity Zone incentives while contributing to community development. The fund's target of $250 million suggests a substantial commitment to these areas, which may lead to a positive ripple effect across the local business landscape.

Financial Analyst

Caliber's strategic investments in Downtown Mesa, including the leasing of space to Arizona Distilling Co., are part of a broader push to capitalize on the benefits provided by Opportunity Zone Funds. From a financial perspective, these funds offer significant tax advantages to investors, which can enhance the attractiveness of Caliber's offerings. The goal to raise $250 million for continued investments is ambitious and reflects confidence in the potential for high returns.

It is also important to consider the long-term financial implications of such developments on Caliber's performance. The success of these projects could lead to increased investor confidence and potentially higher stock valuations for Caliber. However, these outcomes are contingent upon the successful execution of the redevelopment projects and the sustained growth of the local economy.

Urban Development Expert

The trend of urban revitalization, as seen in Caliber's involvement in Downtown Mesa, is a key element in urban planning and development. By investing in mixed-use spaces and supporting local businesses like Arizona Distilling Co., Caliber is contributing to the creation of a dynamic urban core that can attract residents and businesses alike. The company's approach, which includes a mix of entertainment, housing and education facilities, is designed to foster a sense of community and stimulate economic growth.

Such developments are often associated with positive externalities, including job creation and improved infrastructure, which can further enhance the desirability of the area. The inclusion of affordable housing options is particularly noteworthy, as it addresses a critical need in many urban centers and can contribute to the social stability of the community. These long-term investments in infrastructure and community development are essential for the sustained growth and resilience of urban centers.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Caliber (NASDAQ: CWD), an alternative asset manager of real estate investments and developments, has brought another new business to Downtown Mesa, Arizona. On Thursday, January 4, Arizona Distilling Co. is celebrating its grand opening, hosting Caliber executives and several Mesa councilmembers, at its location at 155 W. Main Street. After opening its original location in Tempe, Arizona Distilling Co. has become well known for its locally sourced products and award-winning spirits, including Copper City Bourbon, the first legally produced bourbon in Arizona. The new location in Mesa boasts on-site production, a tasting room, and bar area.

“Downtown Mesa continues to grow and experience revitalization,” said Mesa Mayor John Giles. “Arizona Distilling Co. is a welcome addition, creating more opportunities for people to come together in our City’s central corridor and experience everything downtown has to offer. We appreciate Caliber’s investment and commitment to Mesa.”

Caliber leased the space to Arizona Distilling Co. in 2022, which was subsequently built out to accommodate its distilling needs, and the business is one of several that opened their doors in the Downtown Mesa area over the past year, along with several new housing developments, including:

• Level 1 Arcade Bar had its grand opening in July 2023 and is located at 48 W. Main Street. The bar and restaurant hosts a family friendly environment and allows all ages to enjoy a retro arcade experience with fully restored arcade and pinball machines along with a full menu and bar.
• ZenniHome will be installing 90 ZenniHome units at 29 West Main Street, where they conducted an initial groundbreaking event in July 2023. This innovative company brings viable solutions to the housing industry shortage by designing and factory-building their model homes to be easily transported and stack in multi-family configurations.
• 2^nd Avenue Commons located at 140 W. 2^nd Avenue hosted a ribbon cutting ceremony in October 2023 to open its 144-unit apartment community. The development consists of 12 three-story buildings, containing 48 one-bedroom units and 96 two-bedroom units.

Caliber’s Opportunity Zone Funds have played a key role in developing these businesses and bringing them to the Downtown Mesa neighborhood.

“The investment in Downtown Mesa is a priority for Caliber, not only as a business growth strategy, but as members of the surrounding community,” said Chris Loeffler, Chief Executive Officer of Caliber. “Mesa is a booming area and it’s attracting young families who are looking for a community that hosts affordable housing options and unique and exciting restaurants, entertainment, and other businesses. We’re proud to be a part of the redevelopment efforts in Mesa, which are providing our investors with the opportunity to invest in meaningful, high impact projects with competitive returns.”

Caliber began acquiring a series of buildings in and around Downtown Mesa, a designated Opportunity Zone, in 2017. Alongside businesses like Arizona Distilling Co., Caliber is developing 10 buildings and approximately 160,000 sq. ft of mixed-use space, including Southwest Institute of Montessori Studies Inc. (SIMS), which closed on a 10-year lease at 305 E. Main Street, and Sonoran Rows, a craft malthouse located at 18 W. Main Street.

These projects in Downtown Mesa are part of Caliber’s Opportunity Zone Fund and are central to the redevelopment of the area. Caliber’s second diversified Opportunity Zone fund is now available to accredited investors with a total fundraise target of $250 million. Current plans for the funds include continued investment in Downtown Mesa, the Scottsdale-Riverwalk area, and Downtown Bryan/College Station area in Texas. Opportunity Zone funds offer investors the ability to reduce and eliminate short and long-term capital gains tax liabilities by investing in a professionally managed real estate fund and completing new developments that are impactful to the designated communities within each zone.

About Caliber

Caliber is a manager and developer of real estate that assists investors seeking access to potentially lucrative investments within Caliber’s target markets. Caliber creates and manages real estate funds that allow investors to participate as partners in multiple real estate investment strategies, including opportunity zone, opportunistic, distressed, value-add, and core plus investing. Caliber is differentiated by its in-house asset services group, which provides Caliber with stronger control of the real estate it manages and allows it to focus on projects between $5-$50m in size. Caliber’s investments are made available to registered investment advisers, broker-dealers, institutions, family offices and high net worth individuals through Caliber’s in-house client services group. Additional information can be found at Caliberco.com and Caliber Funds.co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240104540467/en/

Caliber:

Victoria Rotondo

+1 480-295-7600

Victoria.Rotondo@caliberco.com

Media Relations:

Kelly McAndrew

Financial Profiles

+1 203-613-1552

KMcAndrew@finprofiles.com

Source: Caliber

FAQ

What is the significance of Arizona Distilling Co.'s grand opening in Downtown Mesa, Arizona?

Arizona Distilling Co.'s grand opening in Downtown Mesa, Arizona, marks the addition of a new business to the area, showcasing locally sourced products and award-winning spirits, contributing to the growth and revitalization of the city.

How has Caliber (CWD) contributed to the development of Downtown Mesa, Arizona?

Caliber (CWD) has played a key role in developing businesses in Downtown Mesa, Arizona, through its Opportunity Zone Funds, investing in impactful projects that contribute to the growth and experience of the area.

What are the key features of Caliber's Opportunity Zone Funds?

Caliber's Opportunity Zone Funds offer investors the ability to reduce and eliminate short and long-term capital gains tax liabilities by investing in impactful real estate fund projects in designated communities.