|
|
CRONHEIM MORTGAGE ARRANGES $103,511,284 NOTE PURCHASE
CORPORATE OFFICES IN LAS VEGAS, MEMPHIS, & COLUMBUS, IN
Dev Morris and Andrew Stewart have
completed the acquisition of a single loan collateralized by three
single-tenant net leased properties occupied by NV Energy, (NYSE: NVE),
FedEx (NYSE: FDX), and Cummins, Inc. (NYSE: CMI). The loan was acquired in a
pari-passu partnership by Cronheim's correspondent investors, including
American National, National Western Life Insurance Company and The Westcap
Corporation (of Delaware), for which Cronheim will act as servicer. The
seller was KeyBank National Association, who originated the debt in 2007 for
affiliated entities of Lexington Realty Trust (NYSE: LXP) as borrower. The
three properties total 1.2 million square feet.
NV Energy, the result of a 1999 merger between Nevada Power, Sierra Pacific
Power, and Sierra Pacific Resources, has provided electricity to customers
in northern Nevada and northeastern California for over 150 years. The
company's service area covers approximately 55,000 miles. The 282,000 square
foot property has served as Nevada Power's (and now NV Energy's) corporate
headquarters since it was constructed in 1983.
FedEx was founded in Memphis in 1973, occupying a 210-acre campus adjacent
to the Memphis International Airport in addition to its corporate
headquarters and other office buildings in the Memphis area. The collateral
consists of 521,286 sf in 4 buildings located immediately west of the
airport, which FedEx has occupied since they were built in the early 1980's.
The facility houses FedEx's flight simulation and pilot training center,
logistics, invoicing and main computer operations. FedEx is Memphis's
largest employer, with over 30,000 local employees.
Cummins, Inc., a global leader in the design, manufacture, distribution, and
servicing of diesel and natural gas engines, as well as electric power
generation systems, employs over 33,000 people in 160 countries. The company
was founded in 1919 and has always been headquartered at this location. The
subject property totals 390,100 square feet, of which 360,000 were built in
1983.
Cronheim conceived of the idea to assemble this loan purchase as a
participation given its long-standing relationship with all of the buyers;
and as a result, was able to achieve an expeditious completion to a complex
transaction. According to Dev Morris, Principal of Cronheim, "We expect to
utilize this group to finance additional projects in an environment where
larger transactions are difficult to accomplish".
Several of Cronheim's key executives are also in the process of creating a
fund vehicle to supply capital for additional loan purchases as well as new
originations.
|