Speculative Office Building Secures Construction Financing
Schnitzer West and Craft Companies, LLC a Denver-based, multi-directional real estate firm, have secured $76.97 million in funding from Canada’s Otera Capital, for the completion of The Current, River North, a 12-story Class-A office tower development in RiNo. The project is part of Schnitzer West’s regional development pipeline of more than 1.5 million square feet of office space in Denver.
Located at 3615 Delgany St., in the River North Art District (RiNo) of the Central Business District (CBD) of Denver. Construction of the 238,000-square-foot project began in April 2021 and is scheduled for completion in March 2023.
“This is the first construction loan Schnitzer West has executed with Otera Capital,” said Kyle Flippen, development manager with Schnitzer West. “We’re excited to start this new relationship with Otera as we continue to invest in the Denver market and deliver Class-A office space to the RiNo neighborhood – an important step for the area’s continued success and economic growth.”
The Current’s design includes floor-to-ceiling glass, and the use of View Smart Windows, which employ artificial intelligence to evaluate the position of the sun and adjust the tint to optimize natural light. The technology preserves views by eliminating the need for shades while helping regulate temperature and glare.
The top two floors of the building will offer private amenities for tenants, including 8,000 square feet of Schnitzer West’s signature “Great Room” for working and leisure space, and four separate rooftop and outdoor terraces totaling approximately 11,000 square feet, so that tenants can enjoy views of the Denver skyline and the Front Range. The project will include 2 levels of below grade parking, 4 levels of above grade parking, 238,000 square feet of office space with ground-level retail, building entry lobby, bike parking and high-end hospitality-inspired locker rooms.
Davis Partnership Architects designed the building. The loan was facilitated by Baxter Fain, an industry veteran with more than 25 years of experience in commercial real estate, and Associates Ryan Zikas, Sarah Dinning and Rob Cronenberg of Cushman & Wakefield Denver.
“This was a wonderful opportunity to work with a best in class client with decades of trophy office development in an ever expanding RiNo market. Starting this process during COVID was candidly a challenging task. However, the lending market recognized the sponsorship strength combined with the ‘A’ location and incredible building design thus presenting us with multiple options. Our ultimate lender selection came down to leverage, no pre-leasing requirement and better flexibility for the client,” said Baxter Fain, of the firm’s Denver Equity, Debt & Structured Finance Group.
Renderings courtesy of Davis Partnership Architects