$15M Financing for Nevada Office Property

HENDERSON, NV-The owner of Bella Office Plaza here has secured $15.1-million in financing for the three-building, 347,000-sf office and warehouse development. The five-year loan has a 25-year amortization schedule and a 5.5% interest rate. The loan-to-value ratio was 75%.Located at 6325 S. Pecos Rd., the development includes three two-story buildings and four metal warehouses containing 147,000 sf of office space and 200,000 sf of warehouse space. The buildings were constructed in three phases from 1999-2002 and are 98% leased on average.The owner of the development is Corona Partnership. First National Bank of Nevada funded the loan. The loan was sourced Craig Johnson, executive vice president and COO of Chicago-based Aries Capital. According to Johnson, the funds are being utilized to pay off an existing mini perm loan on the first two phases and the construction loan on Phase III. “Bella is unique in that over 85% of the tenants are on month-to-month leases with each occupant responsible for paying for their own tenant improvements,” says Johnson.Currently 100% leased, Bella Office Plaza I offers 35,000 sf of office and 88,180 sf of warehouse space. At 95% occupancy, Bella Office Plaza II is comprised of a two-story 35,000 sf office building and 52,800 sf dedicated for warehouse usage. Completed in May 2002, Phase III is a 68,000 sf office building that is currently 99% leased.Johnson says the borrower had three separate loans on the property with varying maturity dates, so the best way to maximize the loan dollars was to refinance all three phases at the same time. Because of the refinance, the owner was able to reduce his overall interest rate by more than 2%, saving him over $300,000 per year.