Page 16 —
COLORADO REAL ESTATE JOURNAL
— August 5-August 18, 2015
Finance
by John Rebchook
Josh Simon and Kristian Lich-
tenfels of the Denver office of Hol-
liday Fenoglio Fowler LP recently
arranged financing of $77.5 mil-
lion for two apartment communi-
ties, one inDenver and the other in
Fort Collins.
The financing was on behalf of
Jeff Sanders, principal of Boulder-
basedMountain View.
The communities are the 205-
unit Block 32 at RiNo in Denver
and the 240-unit Terra Vida in Fort
Collins.
In two separate transactions,
Simon and Lichtenfels arranged
a $36.94 million, 20-year, 3.95 per-
cent fixed-rate loan secured for
Terra Vida and a $37.86 million,
20-year, 3.98 percent fixed-rate
loan for Block 32.
MountainViewpaid $43million
in February 2014 for Block 32 and
paid $39 million for Terra Vida in
April 2014, according to public
records.
“When Jeff Sanders bought
the properties, he assumed low-
leveraged HUD loans that were
in place on the two properties,”
Simon said.
When the prepayment penalty
was over,MountainViewreplaced
themwith Fannie Mae loans.
“We had a tremendous amount
of interest from life insurance
companies as well as Fannie Mae-
approved lenders,” Simon said.
Most life insurance compa-
nies, however, won’t provide the
“15-year-plus” time frame that the
borrower wanted, he said.
The Fannie Mae loans were
secured through Baltimore-based
M&T Realty Capital Corp.
The Fannie Mae loans allowed
Sanders to access some of his
“trapped equity” in the extremely
well-performing apartment com-
munities, he said.
“M&T is very strong in the Fan-
nie Mae loan business,” Simon
said.
“Last year, (HFF) did more than
$700 million in Fannie Mae and
this year we will do more than $1
billion,” Simon said.
Terra Vida, located at 3707 Preci-
sion Drive in Fort Collins, is near
Interstate 25 and Harmony Road.
It is less than eight miles from
Colorado State University’s main
campus.
Completed in 2012, the three-
story, Class A property has an
average unit size of 935 square feet
and is 96.3 percent leased.
Amenities include a junior
Olympic swimming pool and
a 5,400-sf clubhouse featuring a
24-hour fitness club, pet washing
station, pool table and compli-
mentary wireless Internet.
Block 32 at RiNo is on a 4.14-acre
site at 3200 Brighton Blvd.
The property is near Interstates
70 and 25 and is less than two
miles from downtown Denver’s
HFF refinanced the debt on Block 32.
HFF refinanced debt on Terra Vida.
