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COLORADO REAL ESTATE JOURNAL
— February 17-March 1, 2016
Finance
by John Rebchook
When
NetReit
recently
paid $25.33 million for the
121,399-square-foot Shea Center
II office building in Highlands
Ranch, it initially planned to put
a lot of money down.
“The borrower kind of changed
course and put less cash into the
deal,” said Doug Austin, a senior
vice president/senior director of
NorthMarq Capital’s San Diego
regional office.
Instead, NetReit decided to put
less money down and get a big-
ger loan.
Austin arranged acquisition
financing of about $17.73 million
for NetReit, a real estate invest-
ment trust. That is about a 70
percent loan-to-value ratio.
“They found another prop-
erty they wanted to buy, so they
wanted to leverage this property
more,” Austin explained.
However, the 10-year loan,
amortized over 30 years, he
arranged for NetReit has attrac-
tive terms.
“It has five years of interest-
only, which helps their cash flow,”
he said.
Austin arranged the loan with
a commercial mortgage-backed
securities lender.
There was a lot of interest from
lenders, he said.
“It’s just a great property in a
great area,” he said.
“They liked the growth in the
area and the continued growth
that is expected,” he added.
Anchor tenants at Shea Cen-
ter II include Halliburton Energy
Services and Shea Homes.
“The challenge to lenders is that
Halliburton takes up quite a bit of
space and so they had to come up
with a business plan in case they
leave and the space needs to be
filled,” Austin said.
However, given the demand
for office space in the area, it
likely could be leased quickly, he
said.
Also, he said Halliburton’s
lease runs until the end of 2022,
so it not about to expire.
The lease for Shea Homes,
however, comes up at the end of
this year, he said.
“Shea Properties (a sister com-
pany to Shea Homes) built the
building and every indication is
that Shea Homes plans to stay,”
Austin said.
NetReit also is bullish on
Colorado and the Denver area,
he said.
“They own quite a few proper-
ties in Colorado,” Austin said.
According to its website, Net-
Reit’s other Colorado holdings
include:
• The 84,145-sf Union Terrance
office building in Lakewood;
• The 44,042-sf Union Town
Center retail center in Colorado
Springs;
• The 5,983-sf Regatta Square
retail center in Denver;
• The 80,600-sf Presidio office
building in Colorado Springs;
and
• The Rangewood medi-
cal office building in Colorado
Springs.
Other News
n
Greg Benjamin,
senior vice
president, and
Jeff DeHarty,
associate producer, in the Den-
ver office of
NorthMarq Capital
arranged supplemental financ-
ing of $7 million for the 252-unit
Heights on Huron apartment
community at 10648 Huron St. in
Northglenn.
The community was construct-
ed in 1969 and has 21 buildings.
The borrower is a veteran com-
mercial real estate developer
and investor. NorthMarq has
arranged a number of loans on
behalf of the developer.
n
Mark Jeffries,
vice president,
and
Conor McCahill,
investment
analyst, in the Denver office of
NorthMarq Capital arranged a
$3.7million refinancing for a retail
center at 3636 and 3700 S. Col-
lege Ave. in Fort Collins. The two
buildings have a total of 35,211
square feet. Men’s Wearhouse is
the largest tenant and the others
are a mix of local and regional
operations.
n
Dale Stewart,
vice president,
and
Mark Lindgren,
investment
analyst, for the Denver office of
NorthMarq Capital
arranged
permanent financing of $1.86
million for Crossroads Self-Stor-
age at 4270 Highland Meadows
Parkway in Windsor. The loan
is a 10-year term with 25-year
amortization and 65 percent loan
to value.
Constructed in 2013, the facility
consists of 236 self-storage units
in seven buildings. There are also
49 recreational vehicle spaces
available.
n
John Richert
and
Chris Bour-
geois
of
Terrix Financial
recently
arranged a $1.8 million refinanc-
ing for a two-story, two-building
apartment community inAurora.
The complex was built in 1961.
The rate for the new loan is
fixed for five years and is amor-
tized over 30 years.
Terrix arranged the loan with a
local bank.
n
John Richert
and
Jay Richert
of
Terrix Financial
arranged a
$1.18 million loan to refinance
a seven-unit apartment building
in Boulder. The 8,041-sf building
was constructed in 1958 and 1971.
The rate on the 10-year loan is
fixed for five years and amortized
over 30 years. There is a 1 percent
prepayment penalty for the life
of the loan. Terrix placed the loan
with a regional bank.
n
John Richert
and
Jay Richert
of
Terrix Financial
arranged a
$1.14 million acquisition loan
for a 28-unit apartment commu-
nity in Colorado Springs. The
complex was built in 1964. The
10-year loan is amortized over
30 years. The lender was a bank
represented by Terrix.
s
Shown is the Shea Center II office building purchased by NetReit.
