Colorado Real Estate Journal - November 19, 2014
Terrix Financial closed $66 million in loans in the third quarter, another sign that lenders remain bullish on the Denver economy, allowing owners to take advantage of surprisingly low interest rates. “It’s not a record amount, but it is one of our better quarters,” said David O’Brien, a principal of Denver-based Terrix. “A lot of our correspondent lenders continue to be willing to put money into Denver,” O’Brien said. Not only willing, but eager. “Denver is a favorite market within the U.S. for lenders, as is Colorado,” O’Brien said. “That is because of our strong economy.” While refinance activity of multifamily communities continues to be strong, “all of the major asset types are in demand,” O’Brien said. That was reflected in the 18 deals that Terrix inked in the third quarter, which included a parking garage, industrial properties, mixed-use properties, and, of course, apartments. “The majority of our business has been in refinancing apartments,” O’Brien said. “Of course, there always is a lot of interest from investors wanting to purchase apartments, too,” he added. However, in the third quarter, retail transactions slightly outpaced apartments, with Terrix completing seven retail transactions, compared with five apartment deals. Terrix also did three office deals. The single largest transaction, however, was a $13.2 million loan for an out-of-state parking garage. Terrix loan officers Craig Branton and Marsha Blair handled that transaction. Branton and Blair, with Jay Richert, also closed $7.15 million in loans for retail properties in Westminster and Englewood. The Westminster property was constructed in 2007 with a pub and grill as the anchor tenant. The Englewood property had extensive rehab in 2009 and was funded by a life insurance company. Kevin Chadwick and Cody Bergan closed more than $1 million in loans for retail properties in Denver and Thornton. In another large deal, Chadwick and Blair closed an $11.2 million loan for an out-of-state, 68-unit apartment property. The interest rate was locked early at loan approval with no prepayment penalty for the acquisition and bridge loan. O’Brien and Gibson closed an $8.13 million loan for a garden-style apartment complex outside of Colorado. With the same borrower and lender, O’Brien and Gibson also closed a $5.94 million loan for the acquisition of a 120-unit apartment complex, renovated in 2011, that was 97 percent occupied. Branton and Richert, meanwhile, completed a $3.65 million refinance of a four-story Denver apartment building constructed in 2010. Richert and Blair closed a $3.55 million loan for a shadow-anchored strip retail center in Aurora, which was 92 percent occupied at the time of closing. Richert and Bergan closed retail properties in Northglenn and Denver for more than $1.5 million. O’Brien and Gibson closed a $1.65 million loan for a Denver retail property that was funded by a correspondent life insurance company represented by Terrix. Also funded by a correspondent life insurance company was a $2.5 million refinance for a multitenant office building in Denver. O’Brien and Gibson handled that transaction. Brandon Rogers and Richert closed a $1.82 million loan for an office building in Aurora and Roy Bierschenk and Richert closed a $1.75 million loan for an office building in Colorado Springs. In the Colorado Springs deal, the interest rate was locked up front and the property had below-market occupancy. Chris Bourgeois and Cody Bergan closed a $1.2 million loan for an apartment building in Golden that was 100 percent occupied. In another property that was 100 percent occupied, Chris and Richert closed a $1.1 million loan for an industrial/flex building in Denver. O’Brien said owners are wise to take advantage of today’s rates. “On the right deal, you can find money for a 10-year, fixedrate below 4 percent,” O’Brien said. Similar rates can be found for 15-year and 20-year loans, he said.