Barings Provides $114M Refi for New 893K-SF Nevada Industrial Center
Tolles Development build the site next to the Reno-Tahoe airport
By Brian Pascus July 30, 2024 9:00 am
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Tolles Development has secured $114 million to refinance Airway Commerce Center, an 893,000-square-foot warehouse and distribution property that opened this year in Reno, Nev., Commercial Observer has learned.
Barings’ $28.4 billion real estate debt platform provided the loan on the Class A industrial property, while CBRE (CBRE)’s Michael Walker arranged the financing.
Jack Cheng, managing director at Barings, expressed gratitude that the deal “deepens [his firm’s] partnership” with both Tolles and its equity partners. Cheng also highlighted optimism around the property’s market fundamentals:
“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,” said Cheng in a statement.
Airway Commerce Center spans four buildings at 3000 Airway Drive in Reno, the third most populous city in Nevada and one famous for its casinos and views of the Sierra Nevada Mountains.
The Nevada Business Weekly reported in 2022 that the four buildings would be organized as one flex industrial property totaling 140,000 square feet; another a Class A industrial development of 440,000 square feet; and two industrial buildings spanning 200,000 square feet and 113,000 square feet, respectively.
The buildings include offices, warehouse distribution facilities and light manufacturing sites, and sit directly south of the Reno-Tahoe International Airport. Tolles Development is leasing land from Reno-Tahoe Airport Authority, according to the Reno Gazette Journal.
The development site had been vacant since the 1980s.
One key element that helped the project win local approval is the use of trees and verdure on the site: Tolles Development planted 440 new trees and 1,500 new shrubs and perennials around Airway Commerce Center
Kyle Rhea, Tolles Development’s chief operating officer, told CO that the development overcame several “entitlement challenges,” including Federal Aviation Administration flight path restrictions, relocation of a FEMA designated floodway, and airport-specific density requirements. He added that the project was partially pre-leased to Marvin Windows & Doors and Sierra Airfreight Express.
“We couldn’t be more pleased to work with Barings and our joint venture partner on the refinance of our Airway Commerce Center in Reno,” said Rhea.
Brian Pascus can be reached at bpascus@commercialobserver.com
