Goldman Lends $68M on Las Vegas Distribution Center Leased to Amazon
What began as a CMBS bid switched to a balance sheet execution for the coveted purchase.
By Cathy Cunningham May 14, 2020 10:30 amreprints
Goldman Sachs (GS) has provided $68 million in acquisition financing for Tropical Distribution Center I, an industrial distribution center in Las Vegas that is fully leased by Amazon (AMZN), sources told Commercial Observer.
The 24-month balance sheet loan features full-term interest only payments and was arranged by Meridian Capital Group’s Kovi Elkus, Jackie Tran and Seth Grossman. Meridian officials declined to confirm the lender’s identity or comment on the property’s new owner.
On the heels of the COVID-19 pandemic, what started out as a CMBS bid for the financing switched to a balance sheet execution.
“We initially approached lenders in the beginning of March with the intention of obtaining long-term fixed-rate financing and procured extremely attractive bids. A few days later, the entire world rapidly changed. While many lenders pulled back on lending entirely, we worked with a long-term Meridian lender that initially provided a strong CMBS bid but was able to quickly pivot and structure the attractive balance sheet terms we successfully closed,” Elkus said. “As the market recovers, we are constantly evaluating fixed-rate options with the ultimate intent to convert this to a permanent loan. Every aspect of closing a large transaction in the current COVID-19 environment is tricky, including inspections and virtual tours, appraisal and third-party reports, recording documents, and more. Our client’s sophistication shined, and the lender was quick to realize the quality of the asset, tenant, long-term lease, and strength of the borrower, allowing for a smooth close in turbulent times.”
The Class A warehouse, at 6001 East Tropical Parkway, comprises 855,000 square feet and is fully leased to Amazon on a triple net basis for the next 14 years. The property was developed by VanTrust Real Estate in 2019 as a build-to-suit for Amazon, and is the largest fulfillment center in Nevada for the e-commerce giant, employing more than 1,500 people. It features 41-foot ceiling heights, large truck courts and insulated buildings.