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Four-Point Play for Berkadia

29 Jun 2015, 9:53 am

By Ioana Neamt, Associate Editor

Hobby Lobby Micro Center, Westmont, Ill.

Hobby Lobby Micro Center, Westmont, Ill.

It’s been a hard day’s night for Berkadia. The company has been putting in a lot of hours lately, closing on four separate transactions across three states.

According to a news release, three managing directors from Berkadia’s Chicago office teamed up with Associate Director Michael Slovitt on four transactions totaling $23.87 million. The properties are located in Oklahoma City, Denver and suburban Chicago.

Mellow Mushroom – a pizza restaurant franchise located in the Denver-Aurora metro area. Managing Director Laura Cathlina, together with Slovitt managed to provide $2.02 million in financing for Kapsia Properties I LLC to acquire the property. The brokers arranged a 10-year loan at a 4.5 percent interest rate.

Cottages at Hefner – a 256-unit multifamily property in Oklahoma City. Managing Director Aaron Abelson and Slovitt secured a 10-year CMBS refinancing loan of $12.8 million. The CMBS lender provided 100 percent of the cost for borrower The Cottages at Hefner Road LLC.

Fresenius Medical Care Highland Park – a dialysis treatment center in Highland Park, Ill. Slovitt and Abelson originated a $2.55 million loan to facilitate the acquisition of the property by Shepard-Warrenville I LLC and Shepard-Warrenville II LLC. Berkadia managed to secure a 20-year loan through a Life Insurance Co. correspondent.

Hobby Lobby & Micro Center – a two-tenant retail center located in Westmont, Ill. Slovitt and Managing Director Bob Toland secured a 10-year, $6.5 million loan for SCP Realty Fund II – Westmont LLC to acquire the asset. The loan features a 30-year amortization schedule that maximizes the client’s cash-on-cash return.

According to Michael Slovitt, each of the borrowers involved in the four transactions has been a long-time Berkadia client. “No matter the property type – in this case multifamily, medical and retail – deal size, or market, we’re able to provide our clients with custom solutions that fit their specific needs,” he added.

Image courtesy of Berkadia Commercial Mortgage LLC

HFF Lands Loan for Southeast Denver Apartments

25 Jun 2015, 12:02 pm

By Ioana Neamt, Associate Editor

The Parc at Cherry Creek - 7555 E. Warren Dr. Denver

The Parc at Cherry Creek – 7555 E. Warren Dr. Denver

With the help of Freddie Mac’s Capital Markets Execution program, HFF has managed to secure a $45 million fixed-rate loan for a 408-unit apartment community in Southeast Denver.

Working on behalf of PCCP LLC and Iron River Management LLC, HFF has obtained a 10-year securitized loan for The Parc at Cherry Creek, a garden-style community located at 7555 E. Warren Dr. The loan bears a 3.89 percent rate with five years interest only, and will be serviced through HFF’s Freddie Mac Program Plus Seller/Servicer program.

According to a news release, the loan was secured with the help of an HFF debt placement team led by managing director Josh Simon and real estate analyst Kristian Lichtenfels.

“Given that we are witnessing the sunset of the currently favorable interest rate environment, it’s smart business for our team to make this move,” said Jonathan Ringham, manager of PCCP & president of Iron River Management in a statement. “Locking in this low rate for the next decade provides enormous flexibility in our future operations.”

The Parc at Cherry Creek offers residents three floor plans ranging in size from 782 to 1,098 square feet. Amenities include a 24-hour fitness center, business center with free Wi-Fi, pool and spa, tennis and basketball courts, detached garages and clubhouse. The property is conveniently located in close proximity to popular local destinations including the Cherry Creek Mall and Tamarac Square.

Iron River Management currently owns three properties totaling nearly 1,000 apartment units in the Denver metro area, with two more projects totaling 260 units currently under development.


Image courtesy of The Parc at Cherry Creek


Apartments Keep Piling Up in Denver

23 Jun 2015, 9:58 pm

By Ioana Neamt, Associate Editor

Country Club Towers

Country Club Towers

Denver’s booming housing market is driving investors to the city like a magnet. Broe Real Estate Group, an affiliate of The Broe Group is one such investor, betting big on the promising market.

The company recently broke ground on two 31-story residential towers in the popular West Wash Park neighborhood. Among the attendees at the groundbreaking ceremony on June 22nd were Denver Mayor Michael Hancock and Sean Broe of The Broe Group, according to a news release.

Country Club Towers II is a project designed by Chicago-based Solomon Cordwell Buenz that will comprise 552 apartments and 1,005 structured parking spaces. The project will create about 1,000 construction jobs and is scheduled for opening in mid-2017. General contractor Swinerton Builder and the Associated General Contractors of Colorado will also provide job training for those who wish to work on the project.

“The development, which will include ample parking and plenty of green space, is a striking enhancement to the existing property and the highly desirable Denver community of West Wash Park,” said Sean Broe of The Broe Group in a statement. “People want to live near downtown Denver, and we are pleased to be able to provide state-of-the-art, energy-efficient residences that are close to where they work and play.”

The existing apartment units in the twin residential towers are currently being renovated. Developers will add amenities such as a lap pool with a 26,000-square-foot deck, fitness center, yoga rooms, multiple outdoor patios, and an indoor common kitchen and clubhouse. Each unit will feature floor-to-ceiling, energy-efficient bay windows with views of the Denver skyline.

The team for the massive project also includes local companies RK Mechanical, the Weifield Group, S.A. Miro, Kimley Horn and StudioInsite.

Image courtesy of The Broe Group

Click here for more data on Denver’s multifamily market

Colorado Center Spicing Things Up with New Expansion

22 Jun 2015, 8:05 pm

By Ioana Neamt, Associate Editor

Colorado Center expansion

Colorado Center expansion

Two out-of-state players are betting big on Denver’s thriving real estate market. Dallas-based Lincoln Property Co. and ASB Real Estate Investments of Washington, D.C. will break ground this month on a 450,000-square-foot expansion at the Colorado Center.

Currently comprising about 500,000 square feet of office space, as well as 120,000 square feet of entertainment space, the Colorado Center is 96 percent occupied, and an attractive bet for investors. Conveniently located between downtown Denver and the Denver Tech Center at 2000 S. Colorado Blvd., the mixed-use center is home to Dave & Buster’s and the United Artists Colorado Center 9 & IMAX theater, the Denver Business Journal reports. The center also features an RTD Light Rail Station, eGo CarShare, RTD FasTracks, as well as a pedestrian bridge over I-25 currently under construction.

“The project will build on the success of earlier phases, adding residential and benefiting from increasing light rail line ridership,” said Robert Bellinger, president & CEO of ASB Real Estate Investments in a statement. “Colorado Center’s convenient location between LoDo and the Tech Center, and its proximity to Cherry Creek create major demand drivers.”

According to a news release, the expansion consists of a 210,000-square-foot Class AA office building, a 205,000-square-foot Class A residential tower, as well as 40,000 square feet of main street retail. JE Dunn Construction Co. of Kansas City will serve as general contractor, while Tryba Architects will handle design work. The office part of the expansion is scheduled for completion in December 2016, while the residential portion is expected to open in mid-2017.

Image courtesy of Tryba Architects


Investors Bet Big on Denver RiNo Apartments

19 Jun 2015, 9:52 am

By Ioana Neamt, Associate Editor

The Yards at Denargo Market

The Yards at Denargo Market

A 301-unit apartment building in Denver’s lively River North neighborhood recently changed hands. Cypress Real Estate Advisors has sold The Yards at Denargo Market to Texas-based CWS Capital Partners for $72 million, according to the Denver Business Journal.

The sale of the three-year-old building at 2797 Wewatta Way went to CWS for $286 per square foot in a 1031 Exchange deal, Denver BusinessDen reports. The transaction was completed with the help of ARA Colorado brokers Terrance Hunt, Jeff Hawks, Doug Andrews and Shane Ozment. CWS has rebranded the property Marq at RiNo.

The property incorporates 301 studio, one- and two-bedroom units and is part of Cypress’ 30-acre Denargo Market development. The former marketplace opened in 1939 and held more than 500 retailers along the Union Pacific railway. Cypress’ vision for the site calls for more than 2,000 residential units and more than 125,000 square feet of retail space, according to the BusinessDen.

The Yards at Denargo Market features amenities such as energy-efficient appliances, fitness center, library, media and gaming room, business center, and conference room. The property also incorporates two landscaped courtyards, a resort-style pool, structured parking garage, and a rooftop amenity deck with views of the mountains and the Denver skyline.

Image courtesy of The Yards at Denargo Market Facebook page

Click here for more data on Denver’s multifamily market

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