CBRE Arranges $58M Refinancing for Historic Downtown Denver Sugar Block
CBRE recently arranged the $58 million refinance of the Sugar Block, a 189,145-square-foot mixed-use development located along 16th Street between Blake and Wazee in lower downtown Denver. Brady O’Donnell, Jeff Halsey and Jill Haug, with CBRE Capital Market’s Debt and Structured Finance group, represented the property owner and worked with Urban Villages, Inc., the developer and property manager. The lender is Principal Real Estate Investors (on behalf of an advised separate account) based in Des Moines, Iowa.
Constructed in 1906 and listed on the National Register of Historic Places, the Historic Sugar building at 1530 16th Street is the namesake of the block. It was originally built for the Great Western Sugar Company and designed by the same architectural firm as Union Station, Grove and Walsh. In 2008, Urban Villages developed the Sugar Cube next door at 1555 Blake Street, followed 10 years later by the addition of Sugar Square, which was completed earlier this year.
“Sugar Block is a seamless blend of turn-of-the-20th -century architecture, modern design and state-of-the-art construction culminating in LoDo’s finest mixed-use project. Urban Villages has done a remarkable job of not only preserving but progressing this historic and iconic property,” said CBRE Vice Chairman Brady O’Donnell.
In total Sugar Block offers nearly 120,000 square feet of Class AA office space, 18,000 square feet of high-end ground-floor retail space and 37 luxury apartment units. The development also has a 132-space subterranean parking garage. The residential units feature 24/7 concierge service and private elevator access among other amenities.
“We have enjoyed working with CBRE throughout the process and appreciate their guidance in selecting a lending partner who shares our vision for the future of the Sugar Block,” said Stina Kayser, Principal and General Counsel of Urban Villages.
Marcus & Millichap Announces Sale of 38-Unit Apartment Building
Marcus & Millichap announced the sale of The Smokey Trail Apartments, a 38-unit apartment property located in Limon, for $3.1 million. The buyer, a limited liability company, was secured and represented by Jason Hornik and Greg Price, investment specialists in Marcus & Millichap’s Denver office.
The property was built in 1992 by Colorado Housing and Finance (CHFA) to combat Limon’s housing shortage. The apartments offer an appealing unit mix, including one-bedroom/one-bathroom flats, two-bedroom/one-bathroom flats as well as three-bedroom/one-and-a-half bathroom flat townhomes.
“This acquisition will offer my client cashflows significantly better than can be found in Denver metro,” stated Hornik. “The higher capitalization rates in the Limon market allowed our client to sell a C Class property in metro Denver at a 5 percent capitalization rate and trade into a B class property in Limon at a 7 percent capitalization rate. The capitalization rate spread improved our clients cash flow by 40 percent and with moderate debt in place he will be able to double his return on equity.”
Additional Transactions:
-
Pinnacle Real Estate Advisors, LLC announced the sale of 5524 South Prince Street located in Littleton. The 4,239-square-foot office property sold for $765,000 ($180.47 per square foot). Senior Advisor Eric Shaw represented the buyer in the transaction.
- Marcus & Millichap announced the sale of Quality Inn Colorado Springs Airport, an 88-room hospitality property located in Colorado Springs, for $6.8 million ($77,272 per key).
-
SVN | Denver Commercial announced the sale of a 5,778-square-foot retail building, 1483-1446 Miner Street in Idaho Springs, for $710,000.
