102-Unit Multifamily Property Sells in Longmont
Capstone Apartment Partners announced the successful sale of 630 Lashley Steet, a 102-unit, 109,210-square-foot multifamily property. Two Arrows Group acquired the asset for an undisclosed price.
The broker team, led by Sean Holamon in parallel with Adam Riddle and Jason Koch, combined efforts and expertise were crucial to overcome numerous challenges and ensure a successful outcome.
Constructed in 1996, Eastglen Apartments has been under the same ownership since its development. As a long-time client of Capstone, the seller entrusted the team with this complex transaction which presented unique challenges including the presence of Low-Income Housing Tax Credit (LIHTC) units comprising 20% of the property, existing HUD debt, and navigating an ongoing insurance claim through closing.
Through a comprehensive marketing campaign, the property attracted close to 20 offers from a combination of out-of-state buyers and in-state buyers. The entire process lasted about five months, from the marketing campaign to closing. Despite a challenging debt environment, the buyers successfully secured a new agency loan, facilitating the transfer of ownership.
The new owner, “Two Arrows Group (“TAG”), is excited to add the Eastglen Apartments to its growing Colorado portfolio. The Capstone team did a great job bringing this complicated transaction across the finish line.” – Darren Everett, managing principal. They plan to perform interior upgrades and increase rents to market levels, aiming to enhance the property’s value while maintaining its appeal to tenants.
“We’re proud to facilitate this transaction and close this for our client on time and at true market price for the asset” – Sean Holamon at Capstone Companies.
Gantry Secures $5.1M Permanent Loan to Refinance Colorado Multi-Tenant Industrial
Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $5.1 million permanent loan to refinance the 54,280-square-foot multi-tenant Concord industrial building. Located at 8530 Concord Center Dr. in Englewood, a Denver MSA suburb, the property features three tenants and offers 24-foot clear heights, ESFR, and direct access to the I-25 and E-470 highways and regional proximity to the I-70 logistics corridor.
Gantry’s Stefan Malmlund, director, and Andy Bratt, principal, with the firm’s Irvine production office represented the borrower, a private real estate investor. The seven-year, fixed rate loan was provided by one of Gantry’s correspondent life company lenders at an attractive rate for the cycle and features 30-year amortization.
According to Gantry’s Stefan Malmlund, “In a capital-constrained environment, having access to life insurance companies is crucial for ensuring dependable execution at competitive terms. Gantry has nearly 40 correspondent relationships, enabling us to collaborate with borrowers across various asset classes to identify the best fit for their investment goals and property fundamentals. After reviewing this transaction with our client-borrower, we found that the life insurance company’s cash-out component and attractive rate offered the best fit for the sponsor’s business plan. With their current loan adjusting to a higher variable rate, the borrower wanted to refinance the property at a lower all-in fixed rate. Additionally, with a recently signed lease, they were able to capitalize on this opportunity by taking some cash out of the property for other acquisitions. One of our life insurance correspondents stepped up to provide both the desired cash-out and an extremely competitive spread relative to the market.”
Marcus & Millichap Capital Corporation Arranges Refinance for the Hyatt Place Keystone
Marcus & Millichap Capital Corporation (MMCC) has arranged the refinance of a 103-key hotel in Keystone. The MMCC Capital markets team was led by Dallas-based managing director Pete Fehlman and associate director Jake Marshall.
Fehlman and Marshall worked on behalf of Realty Capital Partners (RCP) to secure the fixed-rate non-recourse financing. With a 30-year history and a national reputation, RCP has invested over $500 million of equity capital in more than 200 U.S. commercial real estate projects. These projects span a variety of sectors including multi-family, hospitality, retail, senior living, residential development, industrial, office, land, and mixed-use developments, totaling over $2 billion in value.
The hotel was originally built in 1989 and underwent a comprehensive renovation/conversion to the Hyatt Place flag in 2018, making the hotel the only branded property in the market. The Hyatt received an $8.5 million capital infusion in conjunction with the renovation. RCP completely revitalized the property, with a heavy focus on the guest rooms, public spaces, lobby/bar, back-of-house and information technology and systems. The property now features 4,493 SF of meeting space (including a 2,252 SF outdoor patio), a fitness center, outdoor hot tubs, business services, and a complimentary resort shuttle.
“Financings on hotels are extremely challenging to get done today, but we were able to procure multiple competitive term sheets at our proceeds ask for a repeat client. We were also able to quicky close this financing 30 days after term sheet execution,” added Fehlman.
NorthPeak Commercial Advisors Brokers 11-Unit Multifamily Property in Denver for $2,260,000
NorthPeak Commercial Advisors announced the sale of 995 Corona St., Denver, a 9,067-square-foot ($249/SF) 11-unit apartment property.
Greg Johnson and Conner Piretti of NorthPeak Commercial Advisors worked with the seller in this transaction.
“995 Corona marks our fourth transaction with this Buyer,” stated Piretti. “In today’s market, it’s never been more important to know the players and be able to predict how buyers, inspectors and lenders will operate. We were able to navigate a smooth transaction with the help of Chase Bank who financed the building.
The seller, a first-time client who lives out of the country, was confident in our team because of our track record of sales in the immediate area, and we were happy to deliver positive results for him.”
SVN | Denver Commercial Announces $1.1M Sale of Broadway Retail Building
SVN | Denver Commercial, one of Colorado’s top-producing real estate investment brokerage firms, announced the sale of 608 – 610 S. Broadway in Denver. The 3,816-square-foot retail property was sold for $1.1 million.
Elizabeth M. Leder, Esq. and Peter O’Bryan with SVN | Denver Commercial represented the seller, Mountain Operations Management Trust. The buyer, Broadway 24, LLC, was represented by Mike Statter with Cresa and Jay Johnson with VanWest Real Estate Group.
The property, strategically situated close to the New Broadway Park Mixed-Use Redevelopment, promises an exciting future as the buyer plans to redevelop the property into its headquarters featuring a state-of-the-art kitchen showroom. This redevelopment aligns perfectly with the growing trend and demand in the area, enhancing the vibrancy and commercial appeal of S. Broadway.
The seller subleased a sublease space across the street that better suits its evolving business needs. This transaction demonstrates the dynamic nature of the commercial real estate market and the ability of SVN Denver Commercial to facilitate beneficial outcomes for all parties involved.
