The lease extension provides $111 million in payments through 2033, about 87% of the $127.4 million loan balance.
NorthPoint Development and BGO refinanced a 1 million-square-foot Las Vegas warehouse for $127.4 million after Crocs’ HEYDUDE footwear brand agreed to an eight-year lease extension, Connect CRE reported.
The lease calls for $111 million in payments through 2033, about 87% of the $127.4 million loan balance.
The structure matters because long lease terms give a lender cash flow it can underwrite.
Reported by the Real estate debt desk from Connect CRE. Published . Corrections
The Las Vegas warehouse refinance rests on a HEYDUDE lease extension providing $111 million of payments through 2033, about 87 percent of the $127.4 million loan balance.
The 132,055-square-foot building, completed in 2023, was sold by Bluewater Property Group and Affinius Capital.
Realterm paid $26 million for the Quirch Foods-leased building in 2020; the price in the current trade was not disclosed.
Bridge Investment Group and Pacific Development borrowed the bridge loan, which funded an interest reserve and returned equity.
Bridge, Declaration Partners and Avery Hall are the sponsors; coupon and spread were not disclosed.
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