February 4-February 17, 2015 —
COLORADO REAL ESTATE JOURNAL
— Page 17
Finance
by John Rebchook
Institutional Property Advi-
sors Capital Markets, a division
of Marcus & Millichap Capital
Corp., recently arranged $34.08
million in refinancing for the
454-unit Elk Ridge apartment
community in Aurora.
The refinance amount is twice
the $17.05 million that Falking
Platnick Realty Group of Cran-
ford, New Jersey, paid for the
property in 1997, according to
public records.
Elk Ridge, built in 1981 on
29.7 acres and located at 501
Elkhart St., is the only property
owned by FPRG in the Denver
area, according to the New Jer-
sey company’s website.
FPRG’s purchase of Elk Ridge
equated to $37,555 per unit and
$42.31 per square foot, accord-
ing to Apartment Insights, an
apartment database researched
and published by Cary Bruteig.
Jake Roberts and Anita Pary-
ani, both first vice presidents,
capital markets, in IPACM’s
West Los Angeles office, struc-
tured the debt and arranged the
financing.
“An IPA Capital client for
more than 10 years, the prop-
erty owner was confident we
could take advantage of the
low interest rate environment
and maximize the leverage they
needed to cash out money from
the asset they have owned and
created value in for nearly 20
years,” Roberts said.
It was critical to find the cor-
rect lender for the property,
according to Paryani.
“This required a solid apprais-
al and a lender who would go
to 80 percent loan to value on a
refinance,” Paryani said.
That required the right lender.
“IPA identified a lender who
was willing to push the LTV to
the necessary level and meet
our client’s financial goals,”
Paryani said.
The lender was not identified.
The debt is structured with
a seven-year term amortized
over 30 years with a fixed 3.88
percent interest rate with a few
years of interest only.
The 398,040-sf property was
renovated in 2000 and 2003.
s
Elk Ridge in Aurora was recently refinanced.
complex and the consequences
of misunderstanding them can
be serious. The most impor-
tant thing for business owners
and executives to remember is
that these accounting method
changes must be made prior to
filing the 2014 tax return.
Every business should con-
sult with a tax adviser who is
familiar with the new rules to
make sure that it makes the
proper accounting method
changes and elections for its
circumstances. Businesses that
have yet to begin the process
of analyzing prior year calcula-
tions to determine what new
method is appropriate need to
do so immediately and may
need to file for an extension of
time to file 2014 returns.
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