A joint venture, sponsored by Tolles Development, has received a $114 million loan to fund an industrial warehouse hub in West Cost.
The property, known as Airway Commerce Center, features 893,000 square feet of space. The distribution center is located in Reno, Nevada.
CBRE advised on the deal, while Barings provided the loan.
“We are extremely excited to deepen our partnership with Tolles and its equity investors for the financing of this new Class A industrial property,” Jack Cheng, managing director of Barings, said in a statement.
“We believe that newer industrial assets located in strong markets with healthy underlying demand-supply metrics and combined with experienced sponsorship will continue to perform well in any market environment.”
Airway Commerce Center contains a total of four buildings and is separated by A, B, C, and D letters. The D warehouse is the smallest one, with a maximum of 113,387 square feet worth of space, according to CBRE. And B is the largest, offering a maximum of 439,280 square feet.
Tolles Development’s chief operating officer, Kyle Rhea, told the Commercial Observer that the company overcame headwinds regarding the development of the property. This included flight path restrictions that were in place by the Federal Aviation Administration, airport density mandates and relocations of FEMA designated floodway. Keep in mind that the Reno-Tahoe International Airport is just south of the Commerce Center.
To get local approval on the site, Tolles around the property planted 1,500 new shrubs and 440 new trees, the news outlet reported.