Chicago Developer to Begin Construction of 346 Units in Colorado Springs Opportunity Zone
Chicago-based developer Jackson Dearborn Partners (JDP) will soon begin the ground-up construction of Solace at Cimarron Hills, a 346-unit multifamily community in Colorado Springs composed of 10 individual buildings and spanning approximately 366,440 rentable square feet.
The 28.8-acre site is ideally located on the east side of the rapidly growing MSA of Colorado Springs along Powers Boulevard, a high-volume arterial that connects the project to an abundance of retail to the north, and two of El Paso County’s economic drivers – Peterson Air Force Base and Colorado Springs Municipal Airport – to the south. This is a qualified Opportunity Zone project that is fully capitalized through JDP’s Front Range Opportunity Zone Fund I.
Black Bear Capital Partners (BBCP), a real estate financial advisory firm and subsidiary of Black Bear Asset Management, arranged $51.7 million in construction financing on behalf of JDP. The $51.7 million loan, provided by a balance sheet lender, featured an attractive funding level at 75% loan-to-cost (LTC) with interest-only payments for the entirety of the term.
This market-rate multifamily development will be built by Sub 4 Development Company, the construction arm for Jackson Dearborn Partners. The project is scheduled to be complete by early 2023.
The new development will include a clubhouse/fitness facility with a pool and amenity areas such as a lounge/bar, locker rooms, spa and hot tub, firepit, and an outdoor kitchen.
Raymond Zanca and Matthew Stearns of BBCP arranged the financing package on behalf of JDP.
“We are pleased to place the multifamily construction loan which featured highly competitive loan terms and proceeds level for the borrower,” said Zanca, who noted that all parties worked diligently at closing the new financing. “We are delighted to be a part of our client’s growth in Colorado Springs.”
Zanca added that BBCP was able to utilize the unsurpassed design features along with the locational features of Solace at Cimarron Hills to achieve a highly favorable and flexible structure consistent with the borrower’s individualized business plan.
BBCP, which services transactions across all property types, closed numerous complex refinance packages in excess of $800 million year-to-date, with another $400 million in the pipeline. BBCP recently expanded its national platform by opening two new offices, one each in Chicago and New Jersey, with continued plans to make several additional new hires at the senior level in the coming months.
Rendering courtesy of BBCP