A long-time Reno mall just struck a multi-million dollar refinance deal.
Owner Simon Property Group has completed a $ 108 million loan refinance for Meadowood Mall, the 900,000 square foot regional shopping center located at 5000 Meadowood Mall Circle in Reno.
The majority of the funding comes from commercial real estate investment company 3650 REIT, which accounts for $ 58 million of the deal. The remaining capital of the transaction is split equally between Simon Property Group and AEW Capital Management under a joint venture partnership.
The initial loan term for the transaction is five years.
Refinancing is a tool commonly used in commercial real estate. One of the reasons for refinancing is to generate cash. Another is to restructure a loan when it is close to reaching maturity, which would otherwise require a lump sum payment on the remaining loan amount if the terms are left as is.
A 3650 REIT representative confirmed that the refinancing of the Meadowood Mall is due to the latter reason.
“It was a simple refinancing because of the maturity of the loan,” said spokesperson Gregory Micheals. âBut 3650 was able to provide better conditionsâ¦ with the same basic product.â
Commercial real estate investing cited Reno’s explosive growth and the positive future prospects of its proximity to California as the main reasons for participating in the transaction.
Meadowood Mall, in particular, is strongly positioned in the Reno-Sparks market and also enjoys a good central retail location, the company said.
âThere is immense value to be unlocked in retail properties across the country that are well located,â said 3650 co-founder and managing partner Toby Cobb. âThe Meadowood Mall is one such asset, as more residents flock to Reno from California for its favorable business environment, lack of state income tax and the cost. of life below.
The new deal comes exactly a decade after Simon Property Group finalized a 10-year, $ 125 million refinancing deal with Goldman Sachs Commercial Mortgage Capital. This agreement also involved the restructuring of a maturing loan.
Jason Hidalgo covers business and technology for the Reno Gazette Journal and also reviews the latest video games. Follow him on Twitter @jasonhidalgo. Do you like this content ? Support local journalism with an RGJ digital subscription.