The RRA Capital team recently provided financing to transform a mixed-use property in Reno, NV.

The three-story property includes two retail spaces on the ground floor, two floors of office space above, and a basement/lower level. Once a JC Penney store, the property underwent conversion into a mixed-use building in 2010. Recent capital improvements, including a new HVAC system, modernized elevator, new roof, and fully improved basement and commercial kitchen, have further enhanced its value.

RRA Capital provided a 36-month interest-only loan with two 12-month extension options, offering valuable flexibility for the sponsor. The loan structure also incorporated funds for anticipated capital expenditures and leasing costs without negative arbitrage, aligning with the sponsor's business plan. The impressive 30-day closing timeline showcases RRA’s efficiency and ability to meet tight deadlines.

As a repeat borrower, the sponsor's previous success with RRA Capital instilled confidence in their ability to meet the financing needs for this project. This partnership underscores RRA Capital's commitment to understanding and fulfilling their clients' requirements, fostering a strong foundation for mutual success.

Following the initial enhancements, the sponsor vacated an existing third-floor tenant and re-leased that space, along with a portion of the second floor, to office users. The retail tenants' five-year lease terms afford the sponsor an advantageous runway to execute their office-focused business plan.

With a strategic loan structure, swift closing, and allocated funds for improvements and leasing costs, the sponsor is poised to bring their vision for the property's repositioning to life.