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COLORADO REAL ESTATE JOURNAL
— September 2-September 15, 2015
Finance
by John Rebchook
Denver-based Terrix Financial
closed 31 loans in the second
quarter, for a total of $79.38 mil-
lion.
The loans included a wide
range of property types, includ-
ing office and office/warehous-
es, self-storage facilities, retail
centers, a manufactured housing
park and a number of apartment
communities.
The transactions included
refinances and acquisitions for
Colorado and out-of-state prop-
erties.
Many of the loans were placed
with Terrix’s correspondent
lenders.
“I think we are probably in line
to have another good year, close
to a record year,” said Kevin
Chadwick, a principal of Terrix.
Existing owners want to take
advantage of still-low interest
rates by refinancing and investor
appetite for all asset classes in
the Denver area has not waned,
he said.
“We are not seeing any sign
of it slowing down,” Chadwick
said.
“There is a tremendous
amount of capital chasing very
few properties,” he said.
Even if the Fed raises interest
rates, he doesn’t think that will
materially slow activity in the
Denver area.
“It might mean cap rates will
go up a bit, but there is so much
money out there, I don’t think
a slight uptick in interest rates
will make much of a difference,”
Chadwick said.
Chadwick recently closed a
$16.13 million acquisition loan
for four out-of-state properties.
“That was for an investor who
did a deal in Denver and now I
follow him around the country,”
Chadwick said.
Despite his relationship with
the investor, it was a tough, com-
plicated transaction.
A lender represented by Ter-
rix won the deal in a competi-
tive bid process by providing
the best terms and ability to do a
reverse 1031 exchange, as well as
closing in five weeks.
A reverse replacement prop-
erty must be purchased before
the old property is sold.
“That may be the first reverse
1031 I have ever done,” Chad-
wick said.
“The whole thing was closed
in less than five weeks, which
was pretty remarkable,” he said.
In another office transaction,
Chris Bourgeois and Amy Gib-
son closed a $1.3 million refi-
nance loan for an owner-occu-
pied office in Thornton.
The interest rate was fixed for
seven years and was funded by
a regional bank.
In another office deal, John
Richert closed a $2.28 million
Terrix Financial arranged a loan for this office building during the sec-
ond quarter.
