November 19-December 2, 2014 —
COLORADO REAL ESTATE JOURNAL
— Page 19
Finance
by John Rebchook
Terrix Financial closed $66
million in loans in the third
quarter, another sign that lend-
ers remain bullish on the Den-
ver economy, allowing owners
to take advantage of surpris-
ingly low interest rates.
“It’s not a record amount, but
it is one of our better quarters,”
said David O’Brien, a principal
of Denver-based Terrix.
“A lot of our correspondent
lenders continue to be willing
to put money into Denver,”
O’Brien said.
Not only willing, but eager.
“Denver is a favorite market
within the U.S. for lenders, as is
Colorado,” O’Brien said.
“That is because of our strong
economy.”
While refinance activity of
multifamily communities con-
tinues to be strong, “all of
the major asset types are in
demand,” O’Brien said.
That was reflected in the 18
deals that Terrix inked in the
third quarter, which included
a parking garage, industrial
properties, mixed-use proper-
ties, and, of course, apartments.
“The majority of our business
has been in refinancing apart-
ments,” O’Brien said.
“Of course, there always is
a lot of interest from inves-
tors wanting to purchase apart-
ments, too,” he added.
However, in the third quar-
ter, retail transactions slightly
outpaced apartments, with
Terrix completing seven retail
transactions, compared with
five apartment deals.
Terrix also did three office
deals.
The single largest transac-
tion, however, was a $13.2 mil-
lion loan for an out-of-state
parking garage.
Terrix loan officers Craig
Branton and Marsha Blair han-
dled that transaction.
Branton and Blair, with Jay
Richert, also closed $7.15 mil-
lion in loans for retail proper-
ties in Westminster and Engle-
wood.
The Westminster property
was constructed in 2007 with
a pub and grill as the anchor
tenant.
The Englewood property
had extensive rehab in 2009
and was funded by a life insur-
ance company.
Kevin Chadwick and Cody
Bergan closed more than $1
million in loans for retail prop-
erties in Denver and Thornton.
In another large deal, Chad-
wick and Blair closed an $11.2
million loan for an out-of-state,
68-unit apartment property.
The interest rate was locked
early at loan approval with no
prepayment penalty for the
acquisition and bridge loan.
O’Brien and Gibson closed
an $8.13 million loan for a gar-
den-style apartment complex
outside of Colorado.
With the same borrower and
lender, O’Brien and Gibson
also closed a $5.94 million loan
for the acquisition of a 120-unit
apartment complex, renovated
in 2011, that was 97 percent
occupied.
Branton and Richert, mean-
while, completed a $3.65 mil-
lion refinance of a four-story
Denver apartment building
constructed in 2010.
Richert and Blair closed a
$3.55 million loan for a shad-
ow-anchored strip retail center
in Aurora, which was 92 per-
cent occupied at the time of
closing.
Richert and Bergan closed
retail properties in Northglenn
and Denver for more than $1.5
million.
O’Brien and Gibson closed a
$1.65 million loan for a Denver
retail property that was funded
by a correspondent life insur-
ance company represented by
Terrix.
Also funded by a correspon-
dent life insurance company
was a $2.5 million refinance for
a multitenant office building
in Denver. O’Brien and Gibson
handled that transaction.
Brandon Rogers and Richert
closed a $1.82 million loan for
an office building in Aurora
and Roy Bierschenk and
Richert closed a $1.75 million
loan for an office building in
Colorado Springs.
In the Colorado Springs deal,
the interest rate was locked
up front and the property had
below-market occupancy.
Chris Bourgeois and Cody
Bergan closed a $1.2 million
loan for an apartment building
in Golden that was 100 percent
occupied.
In another property that was
100 percent occupied, Chris
and Richert closed a $1.1 mil-
lion loan for an industrial/flex
building in Denver.
O’Brien said owners are wise
to take advantage of today’s
rates.
“On the right deal, you can
find money for a 10-year, fixed-
rate below 4 percent,” O’Brien
said.
Similar rates can be found
for 15-year and 20-year loans,
he said.
Other News
n
Love Funding
has closed
an $11.5 construction-to-per-
manent loan for the second
phase of
Vistas at Jackson
Creek,
a proposed 90-unit mar-
ket-rate apartment community
in Monument.
Peter Wessel,
a senior direc-
tor in Love Funding’s Denver
office, secured the loan through
U.S. Department of Housing
and Urban Development’s
221(d)(4) loan program.
Utilizing the program will
enable the property’s develop-
er to lock in a low interest rate
during the 13-month construc-
tion period and 40-year perma-
nent loan term.
The Jackson Creek Develop-
ment will include 4.4 million
square feet of industrial space
and 2.4 million sf of office and
retail space.
The residential portion of
the property is being divided
among 199 acres for single-
family subdivisions and 93
acres for apartments, with an
additional 234 acres reserved
for open space.
The principals involved in
the project are
Timothy Phelan
and
Robert Oldach,
who are
principals of
Colorado Struc-
tures Inc.,
a general contractor
that has been operating in the
Western U.S. since 1978.
CSI Group closed on a previ-
ous Section 221(d)(4) loan in
2011 to build Phase I of the
project, and completed con-
struction ahead of schedule.
CSI Group also was the gen-
eral contractor and had an
investment interest in RiNo
Center, a market-rate apart-
ment project in Denver that
Wessel secured FHA financing
for in 2011.
s
This office property was refinanced by Terrix.
Terrix arranged a loan for this retail property.
