Highland Sources $20MM For Truckee Development Site

Highland Realty Capital, Truckee Railyard, Oakland, Walnut Creek,

Highland is pleased to announce the successful closing of a pre-development loan for the Truckee Railyard. On behalf of an Oakland-based client, Highland sourced a $20 million senior-secured loan to fund infrastructure improvements on the 38-acre site. Truckee Railyard is fully entitled for up to 950,000 square feet of mixed-use space. Its components will include 46 units of residential condominiums or a 100-key hotel, up to 415 for-rent or for-sale units, 77 affordable artist loft units, 105,000 square feet of retail including a grocery store and brewery, a 750-seat movie theater, and 40,000 square feet of office and civic center space.

Highland Realty Capital, Truckee Railyard, Oakland, Walnut Creek,

Although the collateral was difficult to quantify due to the nature of the project, the capital markets responded favorably. Ultimately, it was an investment manager based in Walnut Creek that funded the $20 million through a newly-created debt allocation. This group understood the value creation that will occur as the Borrower builds, and recognized a unique opportunity to put forth terms that traditional banks and debt funds could not compete with.

The loan will be used to recapitalize existing debt and to fund the horizontal improvements necessary to make the land ready for vertical construction. The land is currently a turnaround or “Balloon Track” for the Amtrak Railway, which will remain in place. A portion of the project will be built within the existing railroad track. Site improvements include connecting utilities, relocating part of the railroad, building out parking, pathways, and streetscapes, and building new roadways.

The Principals of Highland Realty Capital have arranged debt and equity capital in excess of $6.0 Billion for commercial real estate owners, investors, and developers. Highland has broad experience in all product types and all layers of the capital stack for ground-up developments, value-add acquisitions, land acquisitions, recapitalizations, and permanent refinancings.

Highland Realty Capital, Truckee Railyard, Oakland, Walnut Creek,

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