The borrower, Exchange Equities I LLC, acquired the five-acre Sparks property in early 2000. At that time, the 14-building complex was poorly maintained and had a high vacancy level. However, once Exchange Equities gained ownership of the property, significant improvements were made, which resulted in a major decrease in the complex's vacancy level. Open Circles West is now more than 95% occupied.

The recently secured $6-million first trust deed, floating rate loan will be used to refinance the acquisition loan that Exchange Equities incurred when it purchased Open Circles West.

The new loan was funded by Washington Mutual Commercial Real Estate. "Our facility will refinance the borrower's high-interest rate acquisition loan and allow the borrower to complete the renovation plan and increase rents to market levels," says Washington Mutual director Rhett Nunnally, who is based in the firm's Denver, CO office. According to Nunnally, the initial rate was approximately 4.6% on the five-year loan. It is amortized over 30 years and represents 70% of stabilized value. The facility includes a holdback for renovations and an earnout, which is to be funded at stabilization.