SRS Real Estate Partners is pleased to announce that Jordan Yarosh, Vice President with SRS’s Debt & Equity team, has sourced $10 million in preferred equity financing on behalf of Georgia-based development firm, DG Real Estate Partners, to build three owner-occupied ExtraMile gas station/convenience store properties in Nevada.
The properties include the following locations with construction completion anticipated for early 2027.
- 100 Fortune Drive in Dayton, NV
- Stead Blvd. in Reno, NV
- Golden Triangle – Vista Boulevard in Sparks, NV
This capital was placed along with a conventional loan to achieve 100% loan-to-cost (LTC) financing. Most preferred equity investors require a promote, or a share of the profits that the development sponsor earns from the project. But these deals were structured without a profit split so that the developer retains all ownership shares and additional cash flow beyond preferred returns, making it an ideal capital solution for the client’s new ventures.
“Placing preferred equity in today’s market is an extremely difficult task but what made this transaction uniquely challenging was a mix of the specialty use nature of the real estate with a non-credit tenant, along with the out-of-market developers and operators,” said Yarosh. “I was able to utilize my network of capital providers to uncover the right investment partner who not only provided the equity, but also helped lobby for the senior debt piece.”
He added, “The most active developers typically prefer not to provide their own equity as down payment into each one of their projects. By sourcing equity partners to invest alongside net lease developers, it enables the sponsors to pursue more opportunities and expose their equity investors to a larger number of developments. This has the added benefit of allowing developers to strengthen their tenant relationships, expand on their business, and enter new markets.”
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with 29 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.