GOLDEN— Confluence Companies will break ground this month on a 107-unit residence hall for undergraduate students, on a a 1.38 acre parcel adjacent to the Colorado School of Mines in Golden.
Blaylock Van, LLC, an African American owned investment banking and financial services company, recently served as sole placement agent on a $44.25 million, 31.8 year construction-turn-permanent Credit Tenant Lease private placement bond financing that will expand student housing and enhance campus life at the Colorado School of Mines.
The owner of the parcel sold the land to the State of Colorado, on behalf of Mines, leased it back via a long-term ground lease and will commence construction of the residence hall this month.
“Our firm has always pursued opportunities to address our clients’ needs. Credit Tenant Lease financing fits well with the specific requirements and objectives of Mines and the developer,” said Eric Standifer, president and CEO of Blaylock Van.
While the sublease rent will be subject to annual appropriations, this risk is mitigated by the strong demand for housing in Golden and the State’s long history of funding lease obligations in its Lease Revenue Bonds. The financing provides staged funding during the construction period to minimize interest expense and is secured by a leasehold mortgage on the improvements.
“Blaylock Van’s guidance through the bond placement process was invaluable. They earned their fee twice over,” says Tim Walsh, president of Confluence Companies.
Mile High CRE will provide more information on this development as it becomes available.