April 6-April 19, 2016 —
COLORADO REAL ESTATE JOURNAL
— Page 23
Finance
by John Rebchook
Josh Simon and Kristian Lich-
tenfels of the Denver office of Hol-
liday Fenoglio Fowler recently
secured a $30.5 million construc-
tion loan for a 216-unit apartment
community in Broomfield.
Working on behalf of Jeffrey
Sanders of Boulder-based Moun-
tainView Capital LLC, Simon and
Lichtenfels placed the loan with a
regional bank.
The loan is for the garden-style
Mountain View at Palisade Park.
It will open in 2017 on an 8.29-
acre site at the southwest corner of
169thAvenue and Huron Street.
Just off Interstate 25, Mountain
View at Palisade Park is equidis-
tant between downtown Denver
andBoulder. It is about 20minutes
north of downtown and 20 min-
utes east of Boulder.
The community’s eight three-
story buildings will include one-,
two- and three-bedroomunits.
Common-area amenities will
include a community clubhouse,
resort-style swimming pool, state-
of-the-art fitness center, yoga room
and garage/carport parking.
“We had a tremendous amount
of interest from banks, as well as
a couple of life insurance compa-
nies,” Simon said about funding
the property.
The borrower, he said, received
“highly competitive terms,” from
the lender.
Lastyear, theHFFteamof Simon
and Lichtenfels secured $77.5 mil-
lion on behalf of Sanders for the
Block 32 apartment community
in LoHi and the Terra Vida multi-
family community in Fort Collins.
Sanders’ investment and devel-
opment history was a “huge fac-
tor” inhelpinghimget a great deal
on the Broomfield development,
Simon said.
“Jeff has a good track record,”
Simon said.
“And he’s local.”
In fact, local knowledge can’t
be underestimated, especially as
multifamily development financ-
ing is becoming more difficult in
the Denver area, as lenders begin
to worry about an oversupply,
Simon said.
“Being local and really knowing
and understanding the market is
highly important to banks today,”
Simon said.
“Getting construction debt is
probably the most difficult financ-
ing to get for multifamily projects
today, and will be the biggest con-
straint on construction,” he said.
“Banks really look favorably on
local, knowledgeable developers,”
Simon said.
Plus, the development is on a
site that can’t be beat, he said.
“It is a great location right next
to the new Children’s Hospital
and not far from the retail center/
downtown that is going to be built
on the site of the old Westminster
Mall,” Simon said
“It’s right in the path of growth,”
Simon said.
“I think it is going to have a
wide draw for residents,” he said.
“Potentially, it can draw from
people who work downtown as
well as people along the U.S. 36
corridor to Boulder and beyond,”
Simon said.
Other News
n
Stephen B. Bye,
executive
vice president and senior man-
aging director at
NorthMarq
Capital’s
Denver office, recently
arranged permanent financing of
$3.45 million for a 72,741-square-
foot light-industrial building
within the Colorado Technology
Center in Louisville.
The property is at 740 S. Pierce
Ave., at the entrance to the busi-
ness park. The building, construct-
ed in 1982, recently has undergone
a significant renovation. The prop-
erty is managed and leased by
FreemanMyre.
Conor McCahill,
a senior invest-
ment analyst at NorthMarq, assist-
ed Bye in the transaction
“The loan was structured with
a 15-year term and 15-year amor-
tization schedule with a fixed
interest rate at 4.13 percent for the
entire term of the loan,” Bye said.
“Although the property was 85
percent leased at the time of the
funding, the lender didnot require
any holdbacks for lease-up reserve
costs, or for the renovation work
that was continuing at the build-
ing,” he added.
The financing was provided by
a NorthMarq correspondent life
insurance company.
s
HFF’s Josh Simon and Kristian Lichtenfels arranged a $30.5 million loan
for an apartment community at Palisade Park.
