Essex Financial Group (“Essex”) arranged an $87.5 million loan to refinance a five-property retail portfolio totaling 689,599 square feet across the greater Denver metro area. Each of the neighborhood centers is anchored by King Soopers, a subsidiary of Kroger. Essex worked on behalf of AmCap Incorporated – a vertically integrated private equity real estate firm that invests in grocery-anchored and necessity retail properties nationwide — which has owned the properties since 1987.
The five centers are located at:
- Union & Alameda (Lakewood)
- Wadsworth & Jewell (Lakewood)
- 80th & Wadsworth (Arvada)
- Mississippi & Havana (Aurora)
- Leetsdale & Monaco (Denver)
The grocery-anchored portfolio is currently 98% leased, with King Soopers accounting for more than half of the net rentable area. King Soopers is Colorado’s dominant grocer, significantly outperforming other operators in terms of volume and market share. Other tenants in the portfolio include a mix of national and local retailers focused on daily needs, service uses, and restaurants. Each of the properties is situated in a densely populated neighborhood with proximity to rooftops and high daily traffic counts. AmCap has owned and operated more than a dozen properties in the Denver market since its initial acquisition more than 35 years ago.
“Despite the challenging financing environment, the ultimate lender was attracted to this portfolio due the combination of the centers’ superior locations, grocery-anchored nature, proven sales and strong sponsorship” according to Paul Donahue, principal of Essex Financial Group.
Essex secured the fixed-rate, non-recourse loan with an institutional investment manager that was funding on behalf of a life insurance company separate account.
Essex’s Capital Markets team was led by Paul Donahue, Cooper Williams, Matt Perigard and Andrea Mehlem.
Essex Financial Group is a commercial mortgage banking firm headquartered in Denver, specializing in commercial real estate debt and equity placement. For over 30 years, Essex has helped its clients navigate the capital markets effectively and efficiently to identify the best capital source and structure to meet their needs.