CRONHEIM MORTGAGE COMPLETES $105,961,284 LOAN FUNDING
ADDITIONAL PROCEEDS USED FOR LAND PURCHASE
Andrew Stewart, Dev Morris and Lisa
McMahon have completed an additional $2,450,000 financing for an affiliate
of Lexington Realty Trust (NYSE: LXP). This B-Note completes an aggregate
$105,961,284 loan funding, which includes an A-Note of $103,511,284
originated in August 2007 and 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), in
May 2009. The A-Note is collateralized by three single-tenant net leased
properties occupied by NV Energy (NYSE: NVE), FedEx (NYSE: FDX), and
Cummins, Inc. (NYSE: CMI), located in Las Vegas, NV, Memphis, TN, and
Columbus, IN, respectively. The B-Note provided funds for the sale/leaseback
of a 3.58-acre parcel in Las Vegas, NV and is cross-collateralized,
cross-defaulted, and co-terminus with the A-Note.
The 3.58-acre parcel was previously owned by its now tenant, NV Energy
(NYSE: NVE), who occupies the adjacent building as their corporate
headquarters. This building is also owned by LXP and is part of the
collateral for the first mortgage. The parcel is improved with 371 parking
spaces and is used for additional parking at the headquarters building.
Without this parcel the building was “parking impaired” and if NV Energy
were to have vacated or sold this parcel to another party, the adjacent
property would not have enough parking to satisfy local zoning requirements.
According to Andrew Stewart, CEO of Cronheim Mortgage, “This is an excellent
example of how a portfolio lender can evaluate and provide financing for a
value added opportunity during the loan term in an expeditious and mutually
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 building has served as Nevada Power’s (and now NV Energy’s) corporate
headquarters since it was constructed in 1983.