Denver Developer Scores $19M Construction Loan
- Apr 02, 2020
Botnick Realty has secured an $18.9 million construction loan for Bloom at Cherry Creek, a future 111-unit, Class A community in Denver. JLL Capital Markets assisted the borrower to secure the five-year, fixed-rate financing from regional lender Alpine Bank. The developer acquired the land for $3.5 million from private investors in 2018, according to public records.
Construction of the five-story project at 4700 E. Kentucky Ave. is slated for completion by mid-2021. Located on a 1.1-acre site, the community will feature studio, one- and two-bedroom apartments, along with amenities including a game room, gym, grilling station and rooftop terrace with fire pit. The project is located a few miles southeast of downtown Denver and close to the Cherry Creek North dining and shopping district, with Interstate 25 about one mile away.
JLL Senior Directors Kristian Lichtenfels and Matt Steffen led the team that negotiated the financing. Last month, Lichtenfels and colleague Eric Tupler secured a $125 million refinancing package for The Quincy, a 359-unit residential tower owned by Shea Properties in downtown Denver.
As of the third quarter of 2019, there were more than 24,000 multifamily units under construction in and around the Colorado capital, more than 25 percent of them in the downtown, according to a market report by Colliers. Vacancy in the Denver metro area dipped to 4.9 percent by the end of the quarter.
Family-run real estate firm Botnick has a portfolio of more than 2,000 apartment units, with more than 600 units in Colorado and a significant presence in Ohio and Georgia.