Colorado Real Estate Journal - March 2, 2016
A German bank group recently provided a $37.5 million loan to refinance the Warwick Hotel in downtown Denver. Holliday Fenoglio Fowler LP placed the loan with Aareal Capital Corp., on behalf of its owner, Warwick International Group. Aareal Capital’s corporate parent, the Aareal Bank Group, is based in Wiesbaden, Germany. “Warwick is a global hotel company, so it is very well known in Europe,” according to Eric Tupler, senior managing director in Denver’s HFF office, who helped place the loan. Warwick is based in Paris, but has a regional office in Denver. A number of lenders competed for the loan, Tupler noted. “We had a French bank interested and a Canadian bank interested, as well as a number of domestic banks,” Tupler said. “Banks liked it because of its strong sponsorship and because it was a very conservative loan, based on the number of keys” in the 216-room hotel, Tupler said. Warwick International will use the proceeds to replace existing debt, as well as renovate the hotel at 1776 Grant St. Warwick will use part of the proceeds to improve the common areas and the rooms in the hotel. “I believe the renovation is in process,” Tupler said. “It’s been quite some time since the hotel was last renovated.” Warwick wanted a fixed-rate, short-term loan with a low interest rate, which it received from Aareal. Aareal is familiar with Denver. “We first brought them here in 2010-2011,” Tupler said. “They really like Denver because of its growing and diversified economy,” he said. Aareal lends on all commercial real estate assets. “They do all four of the major food groups, plus hotels,” Tupler said. In the 1960s and 1970s, the hotel was a Playboy Club. “Hugh Hefner’s heliport is still on the roof,” Tupler said. “Warwick International Hotels and HFF have worked together for more than two decades,” said Mike Tepedino of HFF's New York office, who also worked on the transaction. “The Warwick Denver Hotel is a prime example of the borrower’s global brand that exemplifies a worldwide standard of excellence.” Other News Catherine Murphy recently arranged $10.36 million in financing for apartment owners in six separate transactions. One was for an acquisition and the others were for refinances. Loans arranged by Murphy include: • A $4.2 million recourse loan with Zuma Lofts LLC and 570 South Fairfax LLC for the purchase of a 20-unit apartment community at 3455 W. 38th Ave. in Denver. The seven-year, fixed-rate loan has an interest rate of 4.16 percent and is amortized over 30 years; • A $2.35 million recourse loan with 910 Downing LLC for the refinance of an 18-unit apartment community at 910 Downing St. in Denver. The five-year, fixed-rate loan has an interest rate of 3.66 percent and is amortized over 30 years; • A $1.89 million nonrecourse loan with Buttermilk Road LLC for the refinance of a 14-unit apartment community at 903 E. 14th Ave. and 1414-1418 Emerson St. in Denver. The three-year, fixed-rate loan has an interest rate of 3.68 percent and is amortized over 30 years; • A $1.17 million recourse loan with Roca Partida LLC for the refinance of a 12-unit apartment community at 1306 Elizabeth St. in Denver. The three-year, fixed-rate loan is at 3.34 percent and is amortized over 30 years; • A $1.08 million recourse loan with CF03 LLC and L&C Investing LLC for the refinance of a 13-unit apartment complex at 1525 Fairfax St. in Denver. The seven-year, fixed-rate loan has an interest rate of 4.05 percent and is amortized over 30 years; and • A $750,000 nonrecourse loan with Ash Apartments LLC for the refinance of a nine-unit apartment complex at 1517-1535 Ash St. in Denver. The five-year, fixed-rate loan has an interest rate of 4.16 percent and is amortized over 30 years.