THE OPPORTUNITY

A New Development in Need of a Capital Partner

A well-established Las Vegas builder completed a newly developed, Class-A industrial property in North Las Vegas and needed a lender who could move quickly to refinance existing construction debt while funding the remaining lease-up. The sponsor, a first-time RRA borrower with a strong track record in owner-user and build-to-suit development across Nevada, brought a clear business plan and a partially-occupied asset ready for execution.

RRA Capital provided a $10,500,000 bridge loan structured to retire the construction debt and fund tenant improvements and leasing commissions for the vacant suite. The loan gave the borrower the capital and runway to lease up on their own timeline without pressure to accept unfavorable terms.

THE PROPERTY

Class-A Industrial in a High-Demand Infill Market

The 56,650 SF facility was purpose-built for multi-tenant industrial use. The building features 28-foot clear heights, four dock-high doors, three grade-level doors, and 61 surface parking spaces. These specifications appeal to a wide range of users from light manufacturing to last-mile distribution.

The floor plan divides naturally into two tenant suites, each with dedicated front office space and an open industrial backend. This flexibility was central to the leasing strategy from day one.

Located in an infill pocket of North Las Vegas, the property sits near I-11 and I-15, two of the region's primary commercial corridors, giving tenants direct access to regional distribution networks and a strong labor pool. North Las Vegas has continued to attract industrial demand driven by population growth, e-commerce activity, and a constrained pipeline of quality product.

THE RRA SOLUTION

Structured for Lease-Up and Exit Flexibility

RRA structured a first-position bridge loan with an initial funded amount and a follow-on funding component reserved for tenant improvements and leasing commissions. At origination, one tenant was already in place, providing a base of income while the sponsor pursued the remaining vacancy.

The structured hold-back aligned RRA's capital deployment with the borrower's leasing milestones, a disciplined approach that kept the project on track and ensured proceeds were tied directly to value creation events.

EXECUTION

Full Occupancy Achieved by End of 2025

The borrower executed the business plan largely as underwritten. Leasing costs for the in-place tenant were completed, and the remaining vacant suite was leased to a gymnastics operator by the end of 2025, bringing the property to full occupancy.

Of the $10,500,000 total commitment, the borrower drew $10,358,000. The final $142,000 went undrawn, reflecting an efficient execution with no material cost overruns. The loan performed as expected throughout its term with no notable complications.

THE EXIT

Sold to a 1031 Buyer at Full Stabilization

With the property fully leased and stabilized, the sponsor ran a sale process that attracted a 1031 exchange buyer. The property sold and the loan paid off in May 2026 at a final UPB of $10,358,000.

The borrower also maintained a refinance application as a backup in the event the sale fell through. It never needed to be exercised. The clean exit validated both the business plan and the market thesis underwritten at origination.

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