CREJ - Journal

May 6-May 19, 2015 —

COLORADO REAL ESTATE JOURNAL

— Page 21

Finance

by John Rebchook

Terrix Financial closed almost

$65 million in loans during the

first quarter.

The $64.96 million in loans rep-

resented 19 separate transactions

and a wide spectrum of asset

classes: apartments, self-storage

units, offices, retail properties

and even a day care center.

Most of them were for refi-

nances, as few owners want to

pay capital gains on sales, limit-

ing the number of acquisitions

in the market, said John Richert,

a stakeholder and principal of

Denver-based Terrix.

For Terrix, it was a strong quar-

ter, but not a record-setting one,

Richert said.

The dollar volume was fair-

ly representative of activity in

recent years, he said.

“I know our biggest year was

about $300 million,” Richert said.

Annualized, this pace would

equate to around $260 million in

total dollar volume for the year,

although Richert said he does

not pay attention to any season-

ality to loan activity.

However, it is almost certain

there would have been more

transactions, for Terrix and the

entire market, if more owners

would be willing to sell their

properties, as demand from buy-

ers is far outstripping the num-

ber of properties on the market,

he said.

Other lenders are telling the

same story.

The loans arranged by Terrix

also covered a wide geographic

area.

Loans were made for proper-

ties in the Denver area, Fort Col-

lins, Colorado Springs and out

of state.

An increasing number of loans

were placed with correspondent

lenders with Terrix Financial.

Loans for four self-storage

facilities accounted for $24.98

million, or 38.4 percent of the

almost $65 million in total loans.

“That is probably just a coinci-

dence,” that self-storage facility

loans accounted for such a big

percentage of the total, Richert

said.

However, despite the record

rents and prices for multifam-

ily properties, “self-storage units

actually have performed better

than any other asset class,” in

terms of appreciation, he said.

“The self-storage market is just

a lot smaller than themultifamily

market and so there are far fewer

self-storage deals,” Richert said.

Three of the facilities had

climate-controlled units. Corre-

spondent life insurance compa-

nies funded two of them.

Craig Branton and Amy Gib-

son of Terrix closed an $11 mil-

lion loan for an out-of-state, 904-

unit self-storage property con-

structed in two phases in 2009

and 2013.

The 20-year loan had a 4.25

percent interest rate.

Amenities of that facility, built

in 2009 and 2013, included extra-

wide automatic loading doors,

individual door alarms, and a

full-time, on-site, after-hours

security guard.

Terrix also arranged $23.82

million in loans for three sepa-

rate apartment transactions.

The lion’s share of those loans

were for an apartment commu-

nity in Fort Collins and one in

Denver, which were handled by

Richert and Marsha Blair of Ter-

rix.

Terrix arranged a $19.67 mil-

lion refinance for the Fort Collins

property, which was built in 1968

and 1969.

The loan has a 3.8 percent inter-

est rate that is fixed for 10 years

and amortized over 30 years.

The Fort Collins complex has

253 units in 33 buildings. It was

financed by a Fannie Mae lender

represented by Terrix.

For the Denver apartment

building, Terrix locked in the

interest rate at signing for the

property, which has a U-shaped

design and a central courtyard.

Details of other Terrix loans

include:

•A$2.6millionacquisition loan

for a 20,680-sf, one-story retail

center built in 1998 in Parker. The

loan rate is fixed at 3.88 percent

for five years and is amortized

over 25 years. The transaction

was handled by Brandon Rogers

and Cody Bergan;

• A $2.5 million refinance of

a 68-unit, five-story apartment

building built in Denver in 1966.

The loan, arranged by Richert

and Blair, has a 3.72 percent inter-

est rate with a 10-year term. It is

amortized over 25 years;

• A $2.48 million refinance of a

79,375-sf office/warehouse built

in Commerce City in 1975. The

13-unit warehouse is 100 per-

cent occupied. The refinance was

handled by David O’Brien and

Gibson;

• A $2.45 million loan for the

acquisition of a 6,600-sf, 100 per-

cent occupied retail center in Las

Vegas. The 10-year loan, amor-

tized over 25 years, has a 5 per-

cent interest rate. The transac-

tion was handled by Rogers and

Gibson;

• A $1.5 million loan for a

six-building, 25,338-sf industri-

al/office building complex built

between 1962 and1980 in Den-

ver. The loan was arranged by

O’Brien and Jay Richert;

• A $1.05 million refinance of a

29,000-sf light-industrial office/

warehouse property built in 1998

in Longmont. The 30-year loan is

fixed at 4 percent for five years.

The loan was arranged by Chris

Bourgeois and Blair; and

• A $1 million refinance of

a 7,435-sf day care center in

Lakewood. The 30-year loan,

arranged by Bourgeois and Jay

Richert, has an interest rate of

4.25 percent for five years. The

property was built in 1997. The

loan closed in 13 business days.

Other News

The owner of the Presidio, an

81,222-square-foot office build-

ing at 1155 Kelly Johnson Blvd.

in Colorado Springs, recently

refinanced its loan in a $6 million

transaction.

Netreit,

based in Escondido,

California, purchased the Presi-

dio in 2012 for about $7.3 million.

Doug Austin

NorthMarq

Capital’s

San Diego-based

regional office, arranged the refi-

nancing for the Presidio.

The seven-year loan has four

years of interest-only payments

and is amortized over 30 years.

NorthMarq arranged the

financing through its relation-

ship with a conduit commer-

cial mortgage-backed securities

lender.

“This is a premier, repeat bor-

rower for whom we have com-

pleted numerous transaction,”

according to Austin.

Terrix closes $65 million in loans

This retail property was one of the properties that Terrix found a loan

for in the first quarter.

This apartment building was one of the assets that Terrix refinanced in the first quarter.

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