Colorado Real Estate Journal - November 2, 2016
New York-based Square Mile Capital announced that it has originated a $70 million loan secured by the 451-room Hyatt Regency Denver Tech Center. Square Mile made the loan to Columbia Sussex Corp. Columbia Sussex, an investment firm, had recently paid $96 million for the 12-story hotel at 7800 E. Tufts Ave. in the tech center. The seller was JMI Realty, which had paid $57.6 million for the hotel in 2013. At the most recent closing, Square Mile brought Natixis in to acquire the $52.5 million senior mortgage component of the debt. The hotel includes 12 suites, 29,600 square feet of function space, a 533-space parking garage, the Root25 Taphouse & Kitchen, Perks coffee shop, a Hyatt StayFit fitness center and an indoor swimming pool with outdoor sun deck. It has been operated as a Hyatt Regency since construction was completed in 1985. It recently underwent nearly $12.6 million in renovations, including a complete transformation of the lobby, upgrades to the common areas and the introduction of a signature restaurant and lounge. “This transaction provides us the opportunity to expand our portfolio in Denver and establish a lending relationship with Columbia Sussex Corp.,” said Michael Mestel, a principal at Square Mile. “As Denver continues to benefit from continued economic growth and favorable demographic trends, the Hyatt Regency Denver Tech Center will be well-positioned to fulfill the increased corporate and leisure demand for hospitality in southeast Denver,” Mestel said. Square Mile is “looking for additional debt and equity investment opportunities,” according to a spokesman for the company. Financing was arranged by Eastdil Secured. Other News John Richert and fellow associates at Terrix Financial Corp., recently closed $22.79 million in seven loans. Of the loans, almost $9 million were for apartment buildings in Colorado. Transactions include: • A $4.9 million loan for a two-building, 112-unit apartment community in Aurora. Chris Bourgeois and Marsha Blair of Terrix assisted Richert in the transaction. • Blair also assisted Richert with the closing of a $2.75 million loan for a five-story, 39-unit building in Denver. A correspondent life insurance company represented by Terrix Financial funded the loan. • Richert and Blair also closed on a Longmont apartment building with 17 units, which was constructed in 1973. The rate was fixed for the first seven years with a 30-year amortization. • Richert also closed $6.92 million for industrial properties. • Bourgeois and Blair assisted him on a $5.3 million loan for an office/warehouse property in Henderson, which has more than 100,000 square feet. The property, built in 2012, was fully occupied with six tenants. The interest rate was fixed for 10 years and had a 25-year amortization. A correspondent life insurance company represented by Terrix funded it. • Richert, Bourgeois and Blair also closed a $5.4 million loan for a hotel property in Aurora for a veteran Colorado borrower. The three-story hotel has 95 rooms, an indoor pool, fitness area, business center, laundry facilities and offers continental breakfast. The current owner made numerous improvements. A local bank funded the loan which has one year without interest. Kristian Lichtenfels, an associate director in the Denver office of Holliday Fenoglio Fowler LP, arranged a $19 million loan on behalf of Slipstream Properties for the 177-unit Phenix at 4 Mile apartment community at 601 S. Forest St. in Glendale. Lichtenfels secured a 10-year, fixed-rate loan with five years of interest only through Freddie Mac’s CME Program. The securitized loan will be serviced by HFF through its Freddie Mac Program Plus Seller/Servicer program. The Phenix at 4 Mile has eight residential buildings encompassing 11 studio, 119 one- and 47 two-bedroom units averaging 617 sf. Originally built in phases in 1962 and 1972, Slipstream acquired the property in 2015 and extensively renovated and updated all aspects of the property, including unit interiors, building exteriors, common areas and amenities. The community includes a swimming pool and spa, grilling area, enclosed bike shelter, courtyards and views of the adjacent Mir Park. The Phenix at 4 Mile is near Colorado Boulevard and Cherry Creek. Jeff DeHarty, vice president of NorthMarq Capital’s Denver office, arranged a $4.71 million construction loan for Partnering with Physicians LLC, a Colorado limited liability company, to finance the development of the Limelight Healthcare Center, located at 4350 Limelight Ave. in Castle Rock. The Limelight Healthcare Center is a 21,351-sf multitenant medical office building adjacent to Castle Rock Adventist Hospital and Health Campus within the master-planned community called The Meadows. The loan, arranged through a local lender, is on a 10-year term with a 25-year amortization.