Miami-based commercial real estate investment firm 3650 REIT this month announced it has invested in a $28 million B-note stake and $25 million pari passu A-note stake on a $108 million loan to refinance Reno’s Meadowood Mall. According to a Dec. 9 press release, 3650 REIT will retain the controlling class and special servicing rights and own the most interest on the five-year loan. Proceeds will refinance existing debt on the property and is provided to a joint venture between Simon Property Group, Inc. and AEW Capital Management, LP. Simon Property Group owns the 900,000-square-foot mall at 5000 Meadowood Mall Circle. “We at 3650 are excited to invest in another high-quality retail asset,” 3650 REIT co-founder and managing partner Toby Cobb said in a statement. “There is immense value to be unlocked in retail properties across the nation that are well-located and overseen by sophisticated, institutional sponsors. Meadowood Mall is one of those assets, as more and more residents flock to Reno from California for its business-friendly environment, lack of state income taxes and lower cost of living.” “This was a simple refinancing due to the loan maturing,” Cobb said in a Dec. 15 Reno Gazette Journal story. “But 3650 was able to provide better terms … with the same basic proceeds.” The new deal arrives a decade after Simon finalized a 10-year, $125 million refinance agreement with Goldman Sachs Commercial Mortgage Capital, according to the RGJ. That deal also involved restructuring a maturing loan.
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