Dekel Capital Orchestrates $35M in Financing for Las Vegas Office Asset

The firm raised joint venture equity and secured first mortgage debt for Moonwater Capital's acquisition of the NV Energy Pearson Building.
NV Energy Pearson Building. Image courtesy of Dekel Capital

Dekel Capital has orchestrated $35 million in financing for Moonwater Capital’s acquisition of the approximately 262,000-square-foot NV Energy Pearson Building in Las Vegas. Moonwater purchased the Class A corporate headquarters property from Lexington Realty Trust in a transaction valued at roughly $33.4 million, according to the Clark County Assessor’s office.

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Lexington had owned a 20 percent interest in the NV Energy Pearson Building, having sold the remaining stake to Davidson Kempner Capital Management for $60.7 million in 2018 as part of a $726 million office portfolio transaction. Located 4 miles from downtown Las Vegas at 6226 W. Sahara Ave., the four-story property first opened its doors in 1983 as the headquarters of NV Energy and has served solely as the Berkshire Hathaway Energy subsidiary’s home ever since.

Financing for the office destination, acquired as a core-plus asset, took the shape of a two-part package comprising debt and equity. Dekel secured approximately $23.8 million in long-term, fixed-rate, first mortgage debt from a West Coast-based regional bank. The real estate merchant banking firm also rounded up joint venture equity on Moonwater’s behalf, the majority of which came from a private REIT managed by real estate crowdfunding and investment company RealtyMogul.

Both the lending and investment communities took a strong interest in the NV Energy Pearson Building financing opportunity. Dekel notes in a prepared statement that a range of lending sources vied for the chance to provide funds, and on the equity side, investors were drawn in by the property’s low-cost basis and robust cash flow from a large credit tenant.

Bucking the trend

In a report released in May, Cushman & Wakefield made a prediction about commercial real estate financing in the time of COVID-19: “In the case of both the equity and debt markets, activity will continue to be restrained by elevated uncertainty.” Dekel, however, has been successful in reeling in financing amid this time of global upheaval. In late April, as the pandemic strengthened its grip on the economy, Dekel arranged $59 million in construction financing for The Latigo Group’s 142-unit mixed-use apartment community outside Los Angeles in Thousand Oaks, Calif., obtaining the funds from a life insurance company and a publicly traded REIT.