March 2-March 15, 2016 —
COLORADO REAL ESTATE JOURNAL
— Page 21
Finance
by John Rebchook
A German bank group recently
provided a $37.5 million loan to
refinance the Warwick Hotel in
downtown Denver.
Holliday Fenoglio Fowler LP
placed the loan with Aareal Capi-
tal Corp., on behalf of its owner,
Warwick International Group.
Aareal Capital’s corporate par-
ent, the Aareal Bank Group, is
based inWiesbaden, Germany.
“Warwick is a global hotel com-
pany, so it is very well known in
Europe,” according to Eric Tupler,
senior managing director in Den-
ver’sHFF office, who helpedplace
the loan.
Warwick is based in Paris, but
has a regional office in Denver.
A number of lenders competed
for the loan, Tupler noted.
“We had a French bank interest-
ed and a Canadian bank interest-
ed, as well as a number of domes-
tic banks,” Tupler said.
“Banks liked it because of its
strong sponsorship and because
it was a very conservative loan,
based on the number of keys” in
the 216-roomhotel, Tupler said.
Warwick International will use
the proceeds to replace existing
debt, as well as renovate the hotel
at 1776 Grant St.
Warwick will use part of the
proceeds to improve the common
areas and the rooms in the hotel.
“I believe the renovation is in
process,” Tupler said. “It’s been
quite some time since the hotel
was last renovated.”
Warwick wanted a fixed-rate,
short-term loanwith a low interest
rate,which it received fromAareal.
Aareal is familiar with Denver.
“We first brought them here in
2010-2011,” Tupler said.
“Theyreally likeDenverbecause
of its growing and diversified
economy,” he said.
Aareal lends on all commercial
real estate assets.
“They do all four of the major
food groups, plus hotels,” Tupler
said.
In the 1960s and 1970s, the hotel
was a Playboy Club.
“Hugh Hefner’s heliport is still
on the roof,” Tupler said.
“Warwick International Hotels
and HFF have worked together
for more than two decades,” said
Mike Tepedino ofHFF'sNewYork
office, who also worked on the
transaction. “The Warwick Den-
ver Hotel is a prime example of
the borrower’s global brand that
exemplifies a worldwide standard
of excellence.”
Other News
n
Catherine Murphy
recently
arranged $10.36 million in financ-
ing for apartment owners in six
separate transactions.
One was for an acquisition and
the others were for refinances.
Loans arranged by Murphy
include:
• A $4.2 million recourse loan
with
Zuma Lofts LLC
and
570
South Fairfax LLC
for the pur-
chase of a 20-unit apartment com-
munity at 3455 W. 38th Ave. in
Denver. The seven-year, fixed-rate
loan has an interest rate of 4.16
percent and is amortized over 30
years;
• A $2.35 million recourse loan
with
910 Downing LLC
for the
refinance of an 18-unit apartment
community at 910 Downing St. in
Denver. The five-year, fixed-rate
loan has an interest rate of 3.66
percent and is amortized over 30
years;
• A $1.89 million nonrecourse
loan with
Buttermilk Road LLC
for the refinance of a 14-unit apart-
ment community at 903 E. 14th
Ave. and 1414-1418 Emerson St. in
Denver. The three-year, fixed-rate
loan has an interest rate of 3.68
percent and is amortized over 30
years;
• A $1.17 million recourse loan
with
Roca Partida LLC
for the refi-
nance of a 12-unit apartment com-
munity at 1306 Elizabeth St. in
Denver. The three-year, fixed-rate
loan is at 3.34 percent and is amor-
tized over 30 years;
• A $1.08 million recourse loan
with
CF03 LLC
and
L&C Investing
LLC
for the refinance of a 13-unit
apartment complex at 1525 Fair-
fax St. in Denver. The seven-year,
fixed-rate loan has an interest rate
of 4.05 percent and is amortized
over 30 years; and
• A $750,000 nonrecourse loan
with
Ash Apartments LLC
for the
refinance of a nine-unit apartment
complex at 1517-1535 Ash St. in
Denver. The five-year, fixed-rate
loan has an interest rate of 4.16
percent and is amortized over 30
years.
s
The Warwick Hotel in downtown Denver used to be a Playboy Club.
