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Dekel Capital arranged $103.8 MM financing for acquisition of 444,194 SF of Class A Office Space
By: Dekel Capital
Included in this total is a condominium interest in 133,381 SF within Town Square, one of Las Vegas's premier mixed use developments, which includes 352K SF of office space and over 800K SF of retail space. Also included is 310,813 SF split between five buildings in the prestigious Summerlin submarket. Established anchor tenants include Expedia, CVS, Diamond Resorts, Chamberlain School of Nursing, and Shift4 Payments.
Dekel Capital has now sourced a total of $171M of equity and debt for Moonwater Capital over the past twelve months, for the purchase and stabilization of a total of 734,000 SF of class A office space within Las Vegas. These acquisitions coincide with continued strengthening of the fundamentals in the Las Vegas office market where vacancy rates are on a downward trend and office rents are on an upward trend.
"This deal involved two large purchases with very different risk profiles from two different sellers," said Shlomi Ronen. "By combining the two purchases into one financing package we were able to structure the financing in a way that was accretive to the Moonwater from both a pricing and leverage standpoint."
The capitalization of this transaction consisted of an $82.8M floating rate senior loan from Prime Finance, with a term of up to five years. Dekel also sourced $21M equity from a publicly traded REIT. In addition to funding the acquisition, this financing will enable Moonwater to complete the lease up of 184K SF within the portfolio that was vacant at acquisition.
About Dekel Capital:
Dekel Capital is a Los Angeles-based real estate merchant bank with proven expertise in capital market advisory and private equity in commercial real estate. The firm serves an elite group of commercial real estate operators, investors and developers with an exclusive, boutique approach, allowing them to create tailored solutions that address unique capital challenges. For more information, please visit www.dekelcapital.com.
About Moonwater Capital:
Founded in 1997 by Ofir Hagay, Moonwater Capital is a Las Vegas-based boutique private equity real estate fund. Moonwater Capital specializes in value-add investments, particularly real estate properties in the greater Las Vegas and surrounding metropolitan areas. According to RealPage/MPF Research, "value-add investment is an intriguing and timeless concept with optimum ROI opportunity."