Sares Regis Group has secured $139.88 million in first mortgage debt for the acquisition and repositioning of Terracina Apartments, a 386-unit multifamily property located at 13620 Via Varra Road in Broomfield. The five-year, floating rate loan was provided by Mesa West Capital, a leading commercial real estate debt fund manager and portfolio lender.
Terracina Apartments was 95.1 percent leased at closing. A portion of the loan proceeds will help to fund the sponsor’s capital improvement plan that will feature upgrades to unit interiors as well as the renovation of the community’s common areas.
Built in 2010, the 16.5-acre community offers a variety of one- and two-bedroom apartment homes housed in four four-story residential buildings. The community features a wide range of amenities including a pool and hot tub, a clubhouse and fitness center, a coworking lounge, dog park and pet wash, fire pit and grilling area, and an outdoor games area.
Located close to U.S. 36 and rapid transit, the property draws from the Mile High City’s major growth and Boulder’s tech and life sciences sectors.
“Broomfield is uniquely positioned between Denver and Boulder, pulling from those major economic engines with more affordable housing options,” said Mesa West Capital Executive Director Josh Westerberg, who led the origination team out of the private lender’s San Francisco office. “The area’s consistent annual rent growth is proof of that attractive market dynamic. The planned capital improvements for Terracina Apartments will add even more value to this property.”
Over the last decade, Broomfield has experienced tremendous growth, outperforming surrounding metro Denver cities. In particular, skilled millennials are drawn to its high quality of life and much lower housing costs, according to Westerberg. Terracina Apartments offers residents quick connections to Broomfield’s major employers, including Vail Resorts, VMware, OpenText, Crocs, Trimble and SCL Health. Also, Oracle leases more than 1 million square feet across six buildings in the city.
The financing was arranged by Brian Torp, managing director in the Orange County office of Jones Lang LaSalle.
