It’s starting to become old news to say it, but industrial properties continue to be the most desired product type among investors and lenders. As logistics, technology, e-commerce and construction services companies continue to be such important parts of our economy, the industrial real estate markets continue to flourish. We have worked on a wide range of industrial property financings this year, and we would like to share some frequently asked questions and key financing themes that have come up on recent deals.Question: We recently completed a Class A industrial development and already are 75% leased within six months of delivery. Is it too early to explore the permanent...

Essex Financial Group arranged a $9 million permanent loan for BD Omni #1, LLC, a Colorado limited liability company co-managed by H. Dean Properties and Benitez Asset Management, LLC to refinance Denver Airport Business Park, an industrial flex property located in the airport submarket of Denver, CO. BD Omni #1, LLC purchased the three-building portfolio totaling 91,500 square feet in 2014.Essex placed the $9M permanent loan with a national credit union in a cash-out refinance transaction. The 10-year loan features a competitive fixed interest rate with three years of interest-only, followed by a 30-year amortization. The loan is open to prepayment throughout the li...

This article appeared in Colorado Real Estate Journal's Multifamily Properties Quarterly Issue in May 2021.    LINKMultifamily continues to be the darling of commercial real estate, with both debt and equity chasing a limited number of transactions. While acquisition prices continue to set new records, the affordability of debt allows the deals to pencil.  Within the last two months, we have seen life companies and debt funds alike aggressively compete for structured finance opportunities in order to increase their exposure to multifamily. While in recent weeks treasuries have started to tick up, all-in coupons remain extremely attractive. The follo...

Essex Financial Group has arranged a $34.275 million bridge loan to recapitalize 10125 & 10205 Federal Drive (“Interquest Park”) in Colorado Springs, CO for Flywheel Capital (“Flywheel”).  Loan proceeds are being used to refinance the existing debt, retire preferred equity in the capital stack, and provide additional leasing capital for Flywheel to complete its business plan.  Interquest Park consists of a 191,181 square foot office building and a 97,094 square foot industrial building, both of which were built for Quantum Corporation’s regional headquarters in 1998.  The concrete structures reside on 25.85 acres in Northern Colorado Springs and provide...

Essex Financial Group closed loans totaling $150.5 million in proceeds in March, which represents our most active month since the start of the pandemic. March closings included a variety of property types (medical office, retail, and industrial) and loan structures (permanent, bridge, construction). Highlighted transactions include a bridge loan used to finance the acquisition and future leasing capital for an industrial property in Byhalia, Mississippi placed by a debt fund, the refinance of a medical office building downtown Seattle, Washington placed by a correspondent life company, and the refinance of a new retail center in Parker, Colorado also placed by a corr...

Essex Financial Group has arranged a $20 million construction loan for Confluent Development to develop the Central Park Business Center, a speculative infill industrial business park that will be located at the intersection of Interstate 70 and Central Park Boulevard.  The 243,950 square foot industrial park is scheduled to break ground in March 2021 and will feature two (2) Class A buildings that will be divisible down to 20,000 square foot bays.  Both buildings will offer a front-park, rear-load design with 60-foot speed bays, dock-high and drive-in loading, 28-foot clear heights, ESFR sprinklers, and a combined 248 parking spaces (over 1 space per 1,000 SF)....

Essex is happy to announce that lender activity is picking up as we start 2021. The month of February was particularly active, as Essex Financial Group closed four transactions totaling $21.1 million. Three of the four properties were located in the Colorado Front Range and included both industrial and office properties. The fourth closing was for long-time client's acquisition of a grocery-anchored shopping center in Savannah, GA, which was a full-term interest only execution. The four loans were all placed with correspondent life insurance companies, and all were non-recourse to the borrowers. Lenders continue to be very active and aggressive in quot...

This article appeared in the Colorado Real Estate Journal's Retail Properties Quarterly on February 17th, 2020 LINKRetail investor sentiment appears to be slowly improving as recent economic projections indicate a higher probability of a V-shaped recovery commencing in the next few months.  The cloud of uncertainty will be hanging around for some brick and mortar retailers longer than others with omni-channel sales.  However, some experts are predicting the hardest hit tenants like restaurants and health clubs will come back quickly when occupancy restrictions are fully lifted. Experiential retail is another good example where rapid improvement could result fr...

As we all begin a new (and hopefully better) year in 2021, the team at Essex is keeping its eye on several important trends in the commercial mortgage markets that we’ve identified after having conversations with lenders and marketing a variety of new loan requests. Some of these trends are a continuation from what we saw in the second half of 2020, but others reflect the patient approach of lenders to the economic recovery.  Multifamily and industrial loans continue to be in high demand, with lenders offering the lowest rates and best terms for these property types. While rates have increased slightly from late 2020 lows, it is not uncommon for interest ra...

Denver, January 4, 2021 – Essex Financial Group (“Essex”) has formed an exclusive correspondent relationship with PGIM Real Estate to source loans intended for sale to Fannie Mae and Freddie Mac. With this relationship, Essex will work with PGIM Real Estate’s origination team in the Rocky Mountain region and have access to their DUS and Optigo lending platforms. PGIM Real Estate is one of the only lenders to hold DUS and Optigo licenses that is not a bank or a brokerage company and is one of the top agency lending platforms in the country. In 2019, PGIM Real Estate originated $2.1 billion on behalf of Freddie Mac and $5.0 billion on behalf of Fannie Mae, making the fir...