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 efficient parking ratios for office and industrial users. Flywheel acquired the properties in 2018 when the buildings were 100% leased. However, Quantum leased 83% of the space and was a known vacate at acquisition. Since acquiring the asset, Flywheel has leased 221,453 square feet – including a recent 7-year lease with Northrop Grumman for approximately 100,000 square feet – and the buildings are now 77% occupied by three (3) tenants.
Essex originated the 3-year floating rate loan with Tremont Realty Capital, the commercial real estate finance division of The RMR Group, LLC. The 3-year interest-only loan features a very competitive floating rate and ample future funding leasing capital to execute the rest of Flywheels’ business plan to stabilize the Property.
- Capital Source: Debt Fund
- Purpose: Refinance existing debt and fund future leasing capital
- Loan Amount: $34,275,000
- Interest Rate: Floating over LIBOR
- Loan Term: 3 Years
- Amortization: Interest-Only
- Recourse: Carve-Out Guarantees Only