Colorado Real Estate Journal - February 20, 2019
Holliday Fenoglio Fowler LP arranged financing for the development of a 293-unit Class A apartment community in Lakewood. HFF’s Josh Simon and Kristian Lichtenfels represented the borrower, Riverpoint Partners and Iron River Management LLC, to secure the $47.18 million loan. The 15-year construction-to-permanent loan was funded through a correspondent insurance company lender. The loan includes three years of interest only, which is followed by a 35-year amortization schedule. The financing represents 65 percent of the anticipated total project costs and features the potential for additional loan proceeds upon stabilization. Brickhouse at Lamar Station will be located on a 3.75-acre site at 6300 W. 13th Ave., within walking distance of the Lamar Station lightrail stop. The property will total four floors above ground and one level of underground parking. Brickhouse at Lamar Station, which will consist of units averaging 748 square feet, is designed to include “unparalleled” amenities and finishes compared to existing properties in the area, including stainless steel appliances, granite and quartz countertops, washers and dryers, wood flooring and balconies or patios. Common area amenities include a swimming pool, two spacious interior courtyards, fire pits, grilling stations, a large community room, 24-hour fitness center, yoga studio, top-floor club room, business center and pet spa. Completion is expected in mid-2020. Other News JLL’s Capital Markets team secured $7.98 million in debt and joint venture equity financing for The Holiday Inn & Suites – Grand Junction Airport, a 119-room, four-story, full-service hotel in Grand Junction. Managing Director Baxter Fain, along with Vice President Ryan Zikas, led the JLL team on the financing. The financing, secured on behalf of Mars Hospitality, includes a $6.5 million, fixed-rate, 10-year loan at 65 percent loan-to-cost and a $1.48 million equity placement via private investors. The Holiday Inn & Suites project was a strategic refinance for the Mars Hospitality portfolio, according to JLL. The refinance helped restructure the original high-leveraged loan and will allow for improved cash flow and greater investor returns. “Mike May and Mars Hospitality has been an excellent long-term client of ours at JLL. The private equity raise was overcommitted quickly based on Mars’ long-term performance and increasing trend associated with the asset,” said Fain. “We are extremely pleased to create an opportunity for all parties to benefit for the long term,” added Zikas. Holliday Fenoglio Fowler LP arranged $15.1 million in financing for the Advenir at Del Arte Townhomes, an apartment property in Aurora. The HFF team representing the borrower, Advenir Inc., included Eric Tupler, senior managing director, and Josh Simon, managing director. The seven-year, fixed-rate loan was secured through Freddie Mac’s Green Up Program. The securitized loan was used to refinance existing floating-rate debt on the property, and will be serviced by HFF, a Freddie Mac multifamily approved seller/servicer for conventional loans. The refinance was a continuation of the borrower’s strategy to mitigate interest-rate risk amid the current rising rate environment. The borrower was able to replace its existing 5.15 percent, floating rate at closing with a 4.25 percent, seven-year fixed rate. The fixed-rate conversion took the ongoing Libor adjustment risk off the table and ultimately provided the borrower with a reduction in the all-in rate with additional interest-only amortization, according to HFF. Located at 11135 E. Alameda Ave., the 94-unit community features a mix of one- and two-bedroom units and attached garages, washers and dryers, and entertainment kitchens. The property shares common area amenities with neighboring Advenir at Del Arte, a 351-unit community with a variety of loft and flat-style units. Advenir at Del Arte Townhomes, which offers nearby access to Interstates 25, 225 and 70, was 93 percent occupied. Additionally, HFF’s Leon McBroom and Mark Katz of the Denver office arranged $60.2 million in acquisition bridge financing for 1100 Main St., a 30-story, 657,070-square-foot Class A office building in Kansas City, Missouri. The HFF team worked on behalf of the borrower, Somera Road Inc., to secure the floating-rate acquisition bridge loan through TPG RE Finance Trust. The property was acquired by Somera Road Inc. in an off-market transaction. Loan proceeds will be used to renovate, rebrand and reposition the property as the “premier” downtown office tower in Kansas City.