RENO, NV-Crow Canyon Commons Investors II LLC has landed a $24-million loan to finance its acquisition of the 320,000-sf Airport Square regional shopping center, according to Cohen Financial. Cohen arranged the financing for Canyon Commons, which is a newly formed single-asset, special purpose entity.
The Canyon Commons partners are Bill and Jerry Moison of Guardian Equity Growth LLC of Los Altos, CA along with John Mercer of JD Mercer and Co., based in Pleasanton, CA. Their new asset is anchored by a 149,448-sf Costco that was not a part of the acquisition, along with a Mors Furniture for Less, an Office Depot and a PetSmart. The property is at Harvard Way and East Plumb Lane, just west of Highway 395 and the Reno/Tahoe International Airport.
Cohen Financial's San Francisco office director Robert Kincheloe, who originated this transaction, comments that the acquisition loan is structured at 67% of the purchase price. "It also is based on a 30-year amortization with five years of interest only," Kincheloe adds.
The lender is a Wall Street conduit. Even though the property was 97% leased, it was only 77% occupied at the time of the loan closing because the PetSmart space is dark, according to Kincheloe. He says that the lender provided significant leverage, despite the dark PetSmart location, "because of the strong location and market, and excellent sponsorship."
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