$20,000,000
Senior Loan
38 Acre Railyard
Truckee, CA
Highland procured 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 was fully entitled for up to 950,000 square feet of mixed-use space. Its components will included 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. 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 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 has been 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.