Denver Community Scores $69M Recapitalization

The recapitalization will be used to fund existing bridge financing and restructure the capital stack of Loft 9 Apartments.
Loft 9 Apartments. Image courtesy of Pensam Residential

Pensam Residential has made its third preferred-equity investment in Denver. The investment firm facilitated the $69 million recapitalization of Loft 9 Apartments.


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Situated at 11100 East Dartmouth Avenue, Loft 9 is a 418-unit apartment community. The property offers studio, one- and two-bedroom units that feature private yards, in-unit security systems, fireplaces and in select homes, wood-style plank flooring and open-concept living spaces. Among the leading amenities of the property is a resident clubhouse with business center, media center and recreation room. Apartments extend in size from 650 to 1,000 square feet.

New asset value

Many groups struggle to structure preferred equity behind Fannie Mae and also have a hard time placing preferred equity on recapitalizations, as there are frequently vastly differing opinions of value between the parties,” Pensam Residential vice president of acquisitions and finance Noah Miller, told Multi-Housing News. “Pensam was able to successfully structure preferred equity behind Fannie Mae, abiding by Fannie’s strict guidelines to get this deal achieved. In addition, Pensam was willing to work with the sponsor on determining a new value for the asset that both parties agreed upon.”

The sponsor is a family-owned investment firm based in New York. Proceeds from the senior loan and Pensam’s preferred equity investment were used to fund existing bridge financing and restructure the capital stack. 

Situated 25 minutes southeast of Denver, Loft 9 is only minutes from major interstate highways I-225 and I-25. Just south of the apartment community is 4,000-acre Cherry Creek State Park, which features the Cherry Creek reservoir, beaches, campgrounds, nature and interpretive trails, kayaking, rafting, canoeing, and cross-country skiing. Also located nearby are job hubs, as well as retail, restaurants and nightlife.