$38.5M Bridge Loan & $10M JV Equity for Office Acquisition and Repositioning;
Two contiguous office buildings totaling 365,000.
The southeast submarket of Denver, CO, on the boarder with Aurora, CO.
HRC arranged a $38.5M bridge loan and a $10M JV equity investment for the acquisition and repositioning of two contiguous office buildings located in the southeast submarket of Denver, CO. The two buildings, totaling 365,000 SF, were 91% occupied at closing, but 75% of leases expire during the first four years of the loan. The sponsor plans significant capital improvements to re-brand and reposition the buildings.
Highland sourced the non-recourse loan from a debt fund. Pricing was pegged at a spread over LIBOR for a 3-year term with two 1-year extension options. The loan includes a $16M future funding facility for capital improvements, TI’s and leasing commissions.
Highland arranged the equity from an investment manager that provided 80% of the required equity.