Life Insurance Company
The Colorado Industrial Portfolio is a 19-property industrial, office, and flex portfolio with assets located from Boulder to Colorado Springs. The portfolio consists of 1.95 million square feet with individual buildings ranging in size from 26,000 to 295,000 square feet. At loan closing, the portfolio was 93% occupied.
The Borrower acquired the portfolio in phases between 1990 and 1998, and intends to hold each individual asset within the portfolio for the foreseeable future. The Borrower wanted a 10-year fixed-rate non-recourse loan with the flexibility to release collateral and sell off assets in the future.
Essex structured a 10-year fixed-rate loan secured by the portfolio that allowed partial releases and loan pay downs without triggering prepayment penalties. The 10-year loan had a competitive fixed interest rate and a 30-year amortization, which improved the Borrower's cash flow by over $2 million a year.