Sherman Associates has received a $69 million HUD 223(f) loan to refinance its multifamily property in Westminster. The 255-unit property, called Ascent, is an urban-style, mixed-use community containing 25,625 square feet of retail space.
The loan was originated by NewPoint Real Estate Capital LLC Senior Managing Director John D. Motzel. Loan proceeds were used to pay off a two-year lease-up bridge loan provided by Barings, a subsidiary of MassMutual.
“We started the HUD process during lease-up and were able to execute swiftly once Ascent stabilized,” Motzel said. “The 223(f) program is known for its attractive pricing and terms, and we secured a historically low fixed rate by utilizing a green MIP reduction. Ascent is now positioned for long-term success with a 35-year loan term and an attractive step-down prepayment schedule.”
Ascent was built in 2019. The five-story development includes controlled-access tempered and open-air parking. Ten percent of the units at Ascent are affordable at 80% area median income. The elevator building features studio, one- and two-bedroom units, a swimming pool, fitness center, sports simulator, fire pits, barbecue grills and a club room. There are also 12 townhome-style units with attached two-car garages.
“We are grateful for the support of our financial partner who helped us bring a sustainable mixed-income development to the Denver area,” said Chris Sherman, president of Sherman Associates, the developer, owner and manager of Ascent.
The Carlton Group’s Kyle Morgue served as the broker on the transaction.
Ascent achieved LEED® Silver certification for implementing practical and measurable strategies and solutions in areas including sustainable site development, water conservation, energy efficiency, materials selection, and indoor environmental quality.