As seen in the Colorado Real Estate Journal May 3, 2023.The debt markets continue to get more challenging to navigate. Interest rate hikes and macroeconomic factors affect each lending source differently, resulting in an inefficient and confusing debt marketplace. This impacts the entirety of the industry, as debt is associated with almost every single commercial real estate property. The majority of commercial real estate professionals have other things to do during the week than keep tabs on the lending appetite and underwriting metrics for hundreds of lenders. Then there’s us. The lucky ones. Mortgage bankers.Here’s one mortgage banker’s perspective on what’s going on in th...
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Lakewood,
CO – Essex
Financial Group secured $17.0M of bridge financing for the acquisition of 143
Union, a 191,564 SF, 10-story office property centrally located in the Union
Boulevard Corridor in Lakewood, CO. Essex worked on behalf of the buyer, Legacy
Real Estate Investments, to source the five-year, fixed rate loan that was
provided by an insurance company Essex has a long-standing relationship with. 143
Union, a class A landmark 10-story building occupied was just over 70% occupied
to a wide range of tenants that benefit from convenient light rail and
vehicular access, walkable retail and restaurants, and upgraded common areas.
The property is located in the su...
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Denver,
CO – Essex
Financial Group (“Essex”) arranged $32.0M in acquisition financing for the purchase
of 2nd & Josephine, a four-building, 105,253 SF mixed-use property
in the heart of Cherry Creek North. Essex worked on behalf of the buyer, Altus
Properties, to source the seven-year, fixed rate loan with a prominent life
insurance company. 2nd
& Josephine is situated on a ½ city block in Denver’s strongest office
market, surrounded by top restaurants, hotels, retailers, abundant new
construction and more. The Property is currently 100% leased and anchored by
Bank of America and boasts an average historical occupancy of 93% since the
last building was built...
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The capital markets have experienced a rapid transformation over the course of 2022, bringing attention to new themes and trends that continue to unfold. Rising rates, economic uncertainty and record-setting inflation continue to impact the marketplace, including lender appetite. While we don’t want to present a pessimistic outlook, as there is still plenty of demand for mortgages, it is important to be transparent and note the shifts that are taking place. Here are some of the themes and trends we have noticed in this quickly changing environment.What does the lending landscape look like right now? Life companies, banks, conduit lenders and debt funds are asking themselves th...
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Longmont,
CO – Essex
Financial Group (“Essex”) arranged $13.8M in acquisition financing for the purchase
of Front Range Business Park, a two-building, 117,106 SF industrial/flex
complex located in Boulder County. Essex worked on behalf of the buyer, Ivy
Realty, to source the seven-year, fixed rate loan for the acquisition with a
regional bank. Front
Range Business Park is 100% leased to the State of Colorado’s Front Range
Community College (“FRCC”), the largest community college in Colorado, on a
long-term lease. Built in 1988, the property was originally designed for small
bay industrial/flex use and includes 9 dock-high loading doors between the two
buildings. It...
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In reading the Quarterly Mortgage
Banking Association’s (MBA) Q1 2022 loan originations report, readers would expect
a thriving economy in 2022 and predict another year of record low interest
rates, especially for owners of industrial real estate. Some of the headline stats:· Commercial and multifamily loans up 72% compared
to first quarter 2021· Loans on industrial assets increased by 145% compared
to first quarter 2021 (highest increase per product type)However, the global economy
and lending universe have quickly changed, and a large portion of the positive
origination gains in Q1 2022 is from loans sourced in Q4 2021. We have officially entered the
long-a...
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Essex Financial Group (“Essex”)
arranged two (2) acquisition loans on behalf of CentrePoint Properties and
Dunton Commercial (“Sponsor”). The loans
facilitated the purchase of the Interquest Portfolio (241,232 square feet of Class
A office/flex in Colorado Springs) and 6th Avenue West (124,010
square feet in Golden, Colorado).The
Interquest Portfolio is one of the best-in-class, single-story office
properties in Colorado Springs and is located along I-25 in the premier
Interquest Business Park. The single-story office/flex portfolio is 82% leased
to a mix of technology and healthcare tenants, and more than 75% of the
in-place tenants have publicly traded invest...
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Littleton,
CO – Essex
Financial Group (“Essex”) secured $11.0M in post-acquisition financing for Chatfield
Distribution Center, an 88,152 SF light industrial property located in
Littleton, Colorado. Nicola Wealth Real Estate (“Sponsor”), purchased the asset
at the end of 2021. Essex arranged the permanent financing with a life insurance
company at a highly attractive rate with some interest only and prepayment
flexibility. Chatfield
Distribution Center is 100% occupied with the majority of the tenants having a
tenure over 10 years. Constructed in
1997, the property features 25-30% office finish build outs, both dock and
drive-in loading and flexible...
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Boulder,
CO – Essex
Financial Group (“Essex”) secured a $5.0M loan for Burden, Inc. (the Sponsor) to
refinance its Walnut Offices Portfolio located in the heart of central Boulder,
Colorado. The portfolio is comprised of three office buildings totaling 24,977
square feet. Essex structured a loan modification with the existing life
insurance company lender to provide more loan proceeds to the Sponsor in a
cash-out refinance.The
existing loan was originated in 2014 and was set to mature in 2029. Given the
current interest rate environment, the Sponsor wanted to get ahead of the loan
maturity and explore a refinance. Although there were competitive options from
multipl...
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Louisville,
CO – Essex
Financial Group (“Essex”) secured $7.9M in acquisition financing for the purchase
of 1850 Dogwood, a 58,901 SF industrial warehouse/production facility located
in Boulder County’s premier Colorado Tech Center (CTC). Essex worked on behalf
of the buyer, Ivy Realty, to source the five-year, fixed rate loan for the
acquisition. 1850
Dogwood is 100% leased to Alternative Foods, a wholly owned subsidiary of
Savencia Fromage & Dairy, one of the world’s leading companies in the dairy
industry. The infill manufacturing facility is used as a processing facility
for plant-based foods and features 20’ clear heights, dock-high and drive-in
doors,...
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