$20M Construction Loan Secured for Central Park Business Center
Confluent Development has secured a $20 million construction loan to build Central Park Business Center, a speculative infill industrial business park that will be located at the intersection of Interstate 70 and Central Park Boulevard. As one of the few undeveloped infill sites left in Denver, the project is poised to generate significant interest from a deep pool of industrial users looking for first-class space and convenient access for logistics and distribution throughout Metro Denver.
“Class A buildings with highway frontage and easy access for customers and employees are rare in Denver. The site’s visibility has the potential to drive sales growth for future tenants, while its central location will optimize product distribution,” said John Bauknight, senior development director of Confluent Development.
The 243,950 square foot industrial park is scheduled to break ground this month and will feature two Class A buildings that will be divisible down to 20,000-square-foot bays. Both buildings will offer a front-park, rear-load design with 60-foot speed bays, dock-high and drive-in loading, 28-foot clear heights, ESFR sprinklers, and a combined 248 parking spaces (over 1 space per 1,000 SF). Construction completion is scheduled for March 2022.
President Cooper Williams and Assistant Vice President Paul Donahue with Essex Financial Group (“Essex”) placed the 5-year, non-recourse construction loan (completion and carve-out guarantees only) with a prominent global insurance company. The full-term interest only construction loan features a very competitive floating rate and an open prepayment structure after construction completion. Additionally, the construction loan does not have any leasing or revenue tests during the 5-year term, and the lender did not require a LIBOR cap for closing.
Central Park Business Center will have excellent access and visibility from I-70. Class A buildings with highway frontage and easy access for customers are rare in Denver and tend to be the most desired product type by top industrial tenants. The buildings can cater to a single large user or multiple mid-sized tenants. Denver’s industrial market continues to grow at a rapid pace and boasts some of the strongest fundamentals across all product types. Confluent Development intends to benefit from these continued dynamics upon completion in 2022.
Rendering courtesy of Essex