Transactions Report Week Ending 02.15.19
Etkin Johnson Sells Premier 57.8 Acres to Centura Health for $30M
Etkin Johnson Real Estate Partners, a full-service, privately owned commercial real estate investment and development company based in Colorado, today announced the firm sold a 57.813-acre parcel to Centura Health for $30 million. Located at the intersection of I-25 and InterQuest Parkway, the parcel is slated for a third hospital campus for Centura Health’s Penrose-St. Francis Health Services, a full-service, 522-bed acute care facility in Colorado Springs, which includes Penrose Hospital and St. Francis Medical Center.
“Northern Colorado Springs is quickly becoming a leading economic engine, paving a clear path of growth for the city,” said Ryan Good, partner at Etkin Johnson. “This highly visible site will allow Centura Health to better serve Coloradoans, while also providing their doctors, nurses and staff with multiple options for housing nearby. We plan to reinvest the capital into future developments and acquisitions that are currently in the works.”
Etkin Johnson purchased the site as part of a 77-acre parcel in 2016. The site’s strategic location, just east of the U.S. Air Force Academy, offers unobstructed views of nearby Pikes Peak and easy access to several new multifamily, office, hotel and retail developments in the area. In 2017, Colorado Springs’ economic growth hit a seven-year high, leading to a surge of new businesses and residents, particularly millennials. Colorado Springs currently ranks sixth in the country for highest share of millennials overall, at 26.4 percent.
In 2018, Etkin Johnson broke ground on FalconView, a 288-unit luxury apartment community immediately adjacent to the site. Etkin Johnson currently owns more than 3 million square feet of industrial and office property, along with hospitality and multifamily assets along the Front Range.
Zeppelin Development Announces $44.9 million Financing Deal with JP Morgan
Zeppelin Development announced the closing of a $44.9 million permanent loan, arranged by Holliday Fenoglio Fowler, L.P. (HFF), with JP Morgan. The closing provides a fixed rate 10-year loan along with a capital reinvestment in the property.
Flight is home to the headquarters of the outdoor lifestyle company, Boa Technology, as well as a number of small and medium-sized companies such as The Nature Conservancy, Lark Burger and Denver Design Build. The sustainable workplace environment includes stunning, fully-furnished office suites, a solution for early-stage and emerging companies who are looking for office space that is more grown-up than co-working.
NKF Secures $25M Loan for Moxy Denver Cherry Creek
Newmark Knight Frank announced this week that its Debt & Structured Finance team secured a $25 million loan on behalf of BMC Investments from Goldman Sachs for the refinancing of the Moxy Denver Cherry Creek leasehold interest located in Denver.
The 170-key Moxy hotel opened in November 2017 as part of Marriott International’s new select-service lifestyle brand catering to millennials and rate-conscious travelers with attractive designs and finishes. The hotel’s location in the heart of the vibrant Cherry Creek neighborhood is steps from the renowned Cherry Creek Shopping Center as well as an abundance of art galleries, boutiques, restaurants and spas.
BMC Investments is a leading developer in the Cherry Creek area, having invested more than $500 million across numerous transformative projects, including the luxurious 154-key Halycon hotel and the newly completed, mixed-use St Paul Collection offering 165 apartment units and 55,000 square feet of retail space. Matthew Joblon, co-founder, and Brian Cason represented BMC Investments in the transaction.
“The Moxy Denver Cherry Creek has filled a void for the value-oriented guest in Cherry Creek by providing a new, modern lodging option with excellent communal amenities such as the Cherry Creek Beer Garden,” said Mr. Stolly.
“The Moxy’s strong operating momentum since opening last November enabled retiring the construction loan with permanent financing prior to achieving stabilization. The loan provides a 10 year term, 10 year interest-only structure at a very attractive fixed rate (5.06%),” added Mr. Roeschlaub.
HFF Announces $54.60M Acquisition Bridge Financing for 930 15th Street
Holliday Fenoglio Fowler, L.P. (HFF) announced $54.60 million in acquisition bridge financing for the repositioning of 930 15th Street, a 223,000-square-foot vacant office/data center building in downtown Denver.
The HFF team worked on behalf of the borrower, SteelWave LLC and Rialto Capital Management, to arrange the four-year, floating-rate acquisition and bridge loan through Square Mile Capital Management. Loan proceeds will be used to acquire and reposition the asset into a state-of-the-art office building.
Steelwave LLC and Rialto Capital Management with design by Gensler Architects will transform the asset into premier office space within the Denver CBD through significant renovations and inclusion of modern amenities. Planned renovations include a dramatic floor-to-ceiling glass curtain wall on two facades and the installation of executive parking stalls that utilize stackers. Planned amenities include a collaboration lounge area, café and wine bar, rooftop fitness center, bike lab, rooftop event area and lounge, and conference center. Office suites will tout 1345-foot slab-to-slab ceilings, fiber connectivity and completely modernized mechanical systems.
NavPoint Real Estate Group Sells 34,000 SF of Office Building in Sterling for $1.25M
NavPoint Real Estate Group completed the sale of an office building at 777 N 4th St in Sterling. The seller was VeriQuest Ltd. The buyer was Banner Health.
Matt Kulbe and Jeff Brandon of NavPoint Real Estate Group represented the seller. Eric Brynestad of Jones Lang LaSalle Brokerage Inc represented the buyer. This transaction successfully closed in January 2019.
22-Unit Multifamily Building Sells for $3.025M
Nexus Commercial Realty, LLC has closed on the sale of Wise Harris Arms, a 22-unit multifamily building for the sale price of $3,025,000. Jason Koch of Nexus represented the Seller, 605 26th Street, LLC.
Wise Harris Arms Apartments is at 605 26th, Denver, 80205. It is conveniently located on the Welton St. Corridor and adjacent to the 26th & Welton Light Rail Station.
The seller resigned the property to another 20 years of the HAP program. With that and making improvements to the property personally and through city funds, the property is well positioned to help house the community for years to come.