Denver, CO – Holliday Fenoglio Fowler, L.P. (HFF) recently arranged a $13 million refinancing for the Denver Dry Goods Building, an 84,495-square-foot, fully-leased retail and office building designated as a Historic Landmark in downtown Denver, Colorado.
HFF worked on behalf of the borrower, Jonathan Rose Companies, to secure the 10-year, fixed-rate loan with Unum Life Insurance Company of America. HFF will service the loan, proceeds of which will be used to refinance an existing loan.
Constructed in 1888, the historic Denver Dry Goods building (Denver Dry) served as the retail heart of downtown Denver as the city’s premier department store. After the store closed almost 100 years after opening, the borrower purchased the property and re-imagined and redeveloped the 350,000-square-foot building into a vibrant mixed-use retail, office and multi-housing project. The result was space that was subdivided into smaller condominium units, while meticulously preserving the historic integrity of the red brick, sandstone and lime structure and maintaining the original 18’ ceilings along the window walls and other significant areas.
The Denver Dry Goods Building refinancing comprises four commercial condominium units on the lower, first and second levels of the larger, mixed-use, six-story residential commercial building. Completed in 1889, the building is connected via a third-floor pedestrian bridge to a 500-stall parking structure located adjacent to the building. Tenants include T.J. Maxx, Visit Denver Center, Jason’s Deli, Starbucks, Denver Urban Renewal Authority, the Aveda Institute and Yuthok Jewelry. The Denver Dry Goods Building is situated on 1.15 acres at 700 16th Street in the heart of Denver’s CBD. The building has frontage along the 16th Street Mall, a 1.25 mile long pedestrian and transit mall in downtown Denver, and is exposed to more than 30,000 pedestrians daily. Additionally, the property is situated at the inboard light rail stop and half a block away from the outbound stop.
“In 1992, Jonathan Rose’s redevelopment of the Denver Dry was a catalytic project for the revitalization of downtown Denver,” said Chuck Perry, managing member of Rose Companies Management, which provides in-house property and asset management services to Jonathan Rose Companies and its affiliates. “After the Denver Dry was completed, 20 other downtown historic buildings were redeveloped with the same financing model. It was a pleasure to work with the HFF and UNUM teams to refinance the Denver Dry and to continue our commitment to this project. HFF brought us a significant number of financing options, and UNUM was selected as the lender of choice with the most competitive refinancing offer.”
The HFF debt placement team representing the borrower was led by associate directors Leon McBroom and Kristian Lichtenfels. “Kristian and I, as natives to Denver, feel particularly privileged to work on such a historic asset,” McBroom said. “It’s a beautiful building and it benefits from a compassionate ownership group that will continue its storied history for at least another 10 years at the helm.”
Image courtesy of HFF