Colorado Real Estate Journal - September 16, 2015
Owners of small apartment buildings in the Denver area took advantage of low interest rates in the second quarter to refinance their loans. For proof, consider the flurry of deals handled by Catherine Murphy of Chase, who is described by brokers as a rock star lender of urban projects. In the second quarter, she handled more than $55 million in transactions for 31 different properties. Two transactions were for properties in California, but the rest of the apartment buildings were in Denver, the suburbs of Denver or in Boulder. Of those, 25 were for refinances and six were for acquisitions. “It’s not surprising that most of her activity was for refinancing loans,” said Greg Johnson, a multifamily broker at Madison and Co. Two of Murphy’s transactions involved buildings that Johnson and his partner, Kyle Malnati, brokered. One was the purchase of a building at 840 Cherry St. and the other was the acquisition of a building at 1536 Williams St. Both are in Denver. “Regarding the market overall, it’s not surprising to see so many apartment owners locking in interest rates before they rise again,” Johnson said. “We expect to see an increase in sales heading into 2016 as concerns over rising interest rates and apartment construction make more owners fearful that prices could fall,” Johnson said. Together, the 31 apartment buildings have a total of 695 units. The rates on the new loans ranged from 2.9 percent to 4.54 percent. The average interest rate on a loan was slightly less than 3.7 percent. About half were recourse loans and half were nonrecourse loans. All of the loans were amortized over 30 years. The following is a list of loans arranged by Murphy: • A $4.95 million recourse loan with Coco’s Palace LLC for the purchase of a 57-unit apartment complex at 5579 S. Windermere St. in Littleton. The five-year, fixed-rate loan has an interest rate of 5.75 percent; • A $3.5 million loan with Hakabert LLC for the refinance of a 20-unit apartment complex at 1700 17th St. in Boulder. The seven-year, fixed-rate loan has a rate of at 3.71 percent; • A $3.44 million nonrecourse loan with Executive House LLC for the refinance of a 95-unit apartment complex at 330 E. 10th Ave. in Denver. The seven-year, fixed-rate loan is at 3.29 percent; • A $3.19 million nonrecourse loan with RDG Properties LLC for the refinance of a 38-unit apartment complex at 809 Dexter St. in Denver. The five-year, fixed-rate loan is at 3.7 percent; • A $3 million nonrecourse loan with Old Faithful Properties LLC for the refinance of a 40-unit apartment complex at 2035 S. Josephine St. in Denver. The five-year, fixed-rate loan is at 3.7 percent; • A $2.7 million nonrecourse loan with Eight South Clarkson LLC for the refinance of a 27-unit apartment complex at 253-263 Grant St. in Denver. The five-year, fixed-rate loan is at 3.95 percent; • A $2.6 million nonrecourse loan with 1205 Wash LLC for the purchase of a 20-unit apartment complex at 1285 Albion St. in Denver. The five-year, fixed-rate loan is at 3.61 percent; • A $2.5 million nonrecourse loan with RL Chapman Properties-Grant LLC for the refinance of a 40-unit apartment complex at 321 E. 18th Ave. in Denver. The five-year, fixed-rate loan is at 3.18 percent; • A $2.4 million recourse loan with Jim Gilbert LLC for the refinance of a 14-unit apartment complex at 1000-1010-1020 12th St. in Boulder. The seven-year, fixed-rate loan is at 3.61 percent; • A $2.3 million nonrecourse loan with Forest Glen West LLC for the refinance of a 15-unit apartment complex at 2142 Canyon Blvd. in Boulder. The seven-year, fixed-rate loan has a rate of 3.71 percent; • A $2.2 million recourse loan with ML Jewell LLC for the purchase of a 31-unit apartment complex at 8953 W. Jewell Ave. in Lakewood. The seven-year, fixed-rate loan is at 3.79 percent; • A $1.66 million nonrecourse loan with Bean Cove LLC for the refinance of a 17-unit apartment complex at 2208-2214 E. 17th Ave. in Denver. The three-year, fixed-rate loan is at 3.2 percent; • A $1.6 million recourse loan with Stephen Kaali Nagy for the refinance of a 12-unit apartment complex at 10119 Commerce Ave. in Los Angeles. The five-year, fixed-rate loan is at 3.47 percent; • A $1.5 million recourse loan with Terrace Park Apartments LLC for the purchase of a 20-unit apartment complex at 5379 Estes St. in Arvada. The five-year, fixed-rate loan is at 3.84 percent; • A $1.5 million recourse loan with Adrian Kaali-Nagy for the refinance of an eight-unit apartment complex at 514 Shelton St. in Burbank, California. The five-year, fixed-rate loan is at 3.3 percent; • A $1.42 million recourse loan with BPS NV III LLC for the purchase of a 17-unit apartment complex at 840 Cherry St. in Denver. The seven-year, fixed-rate loan is at 3.68 percent; • A $1.31 million nonrecourse loan with Incense Holdings LLC for the refinance of an 11-unit apartment complex at 59 Ogden St. in Denver. The seven-year, fixed-rate loan is at 4.1 percent; • A $1.3 million nonrecourse loan with JOS Investments LLC for the refinance of a 23-unit apartment complex at 2155 S. Josephine St. in Denver. The seven-year, fixed-rate loan is at 3.68 percent; • A $1.27 million recourse loan with Humboldt Apartments LLC for the purchase of a 13-unit apartment complex at 1521 Humboldt St. in Denver. The five-year, fixed-rate loan is at 3.39 percent; • A $1.25 million recourse loan with Barry Brown for the refinance of a 23-unit apartment complex at 1151 York St. in Denver. The five-year, fixed-rate loan is at 3.54 percent; • A $1.2 million nonrecourse loan with Incense Holdings LLC for the refinance of an 11-unit apartment complex at 65 Ogden St. in Denver. The seven-year, fixed-rate loan is at 4.1 percent; • A $1.19 million recourse loan with 1536 Williams LLC for the purchase of a 12-unit apartment complex at 1536 Williams St. in Denver. The five-year, fixed-rate loan is at 3.81 percent; • A $1.19 million nonrecourse loan with Amherst Apartments GP for the refinance of a 34-unit apartment complex at 1500-1510 S. Albion St. in Denver. The 10-year, fixed-rate loan at 4.33 percent is amortized over 30 years; • A $1.06 million nonrecourse loan with Capitol Hill Properties II LLC for the refinance of a 15-unit apartment complex at 1411-1415 Vine St. in Denver. The seven-year, fixed-rate loan is at 3.81 percent; • A $955,000 recourse loan with DU Capital LLC for the refinance of a 12-unit apartment complex at 2358 S. University Blvd. in Denver. The seven-year, fixed-rate loan is at 3.74 percent; • An $878,250 recourse loan with Baron Real Estate LLC for the purchase of an eight-unit apartment complex at 1861-1863 Clarkson St. in Denver. The seven-year, fixed-rate loan is at 4.17 percent; • An $810,000 recourse loan with Monica Cavender for the refinance of a six-unit retail complex at 1101-1115 S. Pearl St. in Denver. The five-year, fixed-rate loan is at 4.54 percent; • A $750,000 recourse loan with 1232 Gaylord LLC for the refinance of a five-unit apartment complex at 1232 Gaylord St. in Denver. The MTA adjustable-rate loan had a start rate of 3.42 percent; • A $600,000 recourse loan with 970 Downing LLC for the refinance of a 10-unit apartment complex at 970 Downing St. in Denver. The seven-year, fixed-rate loan is at 3.96 percent; • A $553,000 recourse loan with 234 Logan LLC for the refinance of a 12-unit apartment complex at 234 Logan St. in Denver. The MTA adjustable rate loan had a start rate of 2.91 percent; and • A $525,000 nonrecourse loan with Brown Siblings LLC for the refinance of a 29-unit apartment complex at 206-210 E. 10th Ave. in Denver. The seven-year, fixed-rate loan is at 3.59 percent.