Knighthead Funding LLC has provided a local investor operating as Columbia Victory LLC with a $21.5 million loan to refinance a newly-built Class A, 125,750-square-foot office building in Colorado Springs.
The property is part of Victory Ridge, a 153-acre master development that includes retail, office, entertainment, and housing. Located at 10855 Hidden Pool Heights, the property, which includes a 1,800-space parking garage, was completed in February 2021 and is currently 21 percent leased.
The 24-month, non-recourse loan will allow the sponsor who developed the property, additional time to market it for lease as creative office space.
“This is a best in class asset with a top sponsor in a great market,” said Knighthead Funding Vice President Henry Boeckmann. “There are great companies in the area in addition to every office amenity a tenant could want.”
After a substantial slowdown in activity due to Covid, the market has seen a gradual but steady increase in tenant activity, particularly for users requiring 5,000 square feet or less. There have also been positive signs of increased activity and interest from larger users, with activity increasing on a weekly basis, according to a Cushman and Wakefield report.
“We are seeing increasing levels of interest from companies in market, who had previously delayed decisions on their space requirements because of the pandemic,” said Knighthead Funding Managing Principal Jonathan Daniel. “Its central location and new quality construction meet the major requirements of a large number of businesses within the market, increasing its overall appeal.”
