Colorado Real Estate Journal - January 7, 2015
Meridian Capital Group LLC, a national commercial real estate finance and advisory firm based in New York City, has arranged a $15.5 million commercial mortgage-backed security loan for the refinance of the Broadmoor Towne Center in Colorado Springs. The borrower was the Omaha-based Noddle Cos., the owner of the 142,500-squarefoot center at Nevada Avenue and Southgate Road. The seven-year loan, provided by a CMBS lender, has a fixed interest rate of 4.51 percent and a 198-month amortization schedule. The transaction was negotiated by Meridian Capital Group associate Sean Silverbrook and Brian Flax, managing director. Tenants in the center include a 50,000-sf Gordman’s, a 46,097-sf 24-Hour Fitness and a 15,000-sf Office Depot. The property is on a ground lease that expires in nine years and has two 10-year renewal options. “The short-term expiring ground lease presented significant challenges for lenders because of the increased refinance risk,” Flax said. “Meridian worked closely with the lender and the sponsor to create a highly structured solution that would be acceptable to the CMBS bond market,” Flax said “By communicating directly with the B-piece buyer for the upcoming securitization, we were able to produce a favorable outcome for a very complex situation,” he added. An estimated 23,860 vehicles drive past the center each day, according to Noddle. There are 10,795 people living in 4,456 households within a one-mile radius of the center. Within three miles, there are 76,084 people living in 30,185 households. Extend the radius to five miles, and the center serves a population of 189,384 in 73,612 households, according to Noddle. Within a one-mile radius, the median annual income is $54,947 and the average income is $68,202. Within a three-mile radius, the median income is $61,882 and the average income is $72,459. Going out another two miles, the incomes drop slightly. Within a five-mile radius, the median household income is $60,474 and the average income is about $68,500.