Majestic Investments principal David Fradin tells GlobeSt.com that AT&T signed a 10-year lease at closing that includes two five-year options and a window to repurchase the asset at 95% of market. Wells Fargo provided Majestic with a 70% acquisition loan. The deal was in escrow for four months.
"The loan was tied to LIBOR and that was part of the [reason for the longer escrow] because LIBOR was so volatile," Fradin says. "At first LIBOR went up and then it ended up dropping down 250 basis points."
After years of focusing mainly on California and mainly on apartments, Fradin says his firm and its stable of investors have been venturing outside the state. In addition to the Reno asset, its first in that market, the company recently purchased a 160,707-square-foot industrial building on 11.57 acres in Portland, OR.
"We're just trying to figure out the best asset class to go after," Fradin says. "We loved apartments then were going toward retail and now that's going a little sideways and so is office; we're trying to go after whatever is doing well but right now everything seems volatile so we are buying fewer assets, higher quality assets."
Cameron Pacific, the acquisition and finance arm of Majestic Investments, represented Majestic in the Reno acquisition. CB Richard Ellis represented AT&T.
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