Reno’s Meadowood Mall Sees $125M Refi

Financing to the tune of $125 million has been put in place for Meadowood Mall, an 877,000-square-foot retail property in Reno, Nev., in a deal orchestrated by HFF on behalf of Meadowood Mall SPE.

November 16, 2011
By Barbra Murray, Contributing Editor

Financing to the tune of $125 million has been put in place for Meadowood Mall, an 877,000-square-foot retail property in Reno, Nev. Commercial Real Estate and capital markets services provider Holliday Fenoglio Fowler L.P. orchestrated the package on behalf of the borrower, Meadowood Mall SPE L.L.C.

Meadowood Mall, which made its debut in 1979 and expanded in 1995, sits in the middle of a trade area that includes Reno International Airport, the Reno/Sparks convention Center, casino hotels, office locations and residential offerings. The property’s owner, Meadowood Mall SPE, is a partnership of entities partially owned by Simon Property Group/The Mills L.P., with Simon claiming a 25 percent stake.

The financing HFF secured on the ownership’s behalf came in the form of a 10-year, fixed-rate loan from Goldman Sachs Commercial Mortgage L.P.  The loan replaces maturing debt on the regional mall. HFF is not commenting on the transaction due to a contractual agreement.

While the credit markets continue to favor the multifamily sector, lenders will respond to the right retail property. “It’s really a tale of three cities,” an industry expert told Commercial Property Executive. “Assets have to have good cash flow, integrity of cash flow and locations in 24-hour markets. When you put those assets out into the market, investors are eager to provide financing. For assets that are 80 percent leased with high tenant rollover in minor or tertiary markets, it’s more difficult.”

HFF facilitated another retail financing deal this year, arranging the $80 million refinancing of the 110,000-square-foot Whalers Village in West Maui.