July 14, 2024
Prime Rate
8.50%
5.19%
4.20%
3.85%

Insurance companies step up to fill gap in CRE financing

From the April 17, 2024 issue of the Colorado Real Estate JournalWhile there was a renewed sense of optimism among lenders at the Mortgage Banking Asso­ciation's annual conference in February, the commercial real estate industry isn't done fight­ing against major headwinds. And, arguably, the most prob­lematic factor in the industry today is the high cost and low availability of financing. The banking environment continues to be challeng­ing and, in my opinion, will remain so throughout the remainder of 2024. While there are undoubtedly bank deals still getting done, their cost of capital, depository require­ments, and strict underwriting metrics often lead to under­whelm...

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Aimee Love Joins Essex

CRE Community, Borrower Clients, Lending Partners and Friends – It is with great honor and excitement that I get to announce Aimee Love as our newest Partner at Essex Financial Group. This is a transformational move for our company, as we continue to strive to be the best real estate capital markets advisory firm in the Rocky Mountain Region. Aimee’s reputation, work ethic, knowledge and integrity are second to none in our industry, and I am confident that her leadership and skillset will take our platform to new levels.Aimee is joining Essex with a 16-year career in regional banking. Most recently, Aimee was a Regional President at Independent Financial where she ran...

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Essex Secures $13.0M Acquisition Loan for Aurora Shopping Center

Aurora, CO – Essex Financial Group arranged a $13.0M loan for the acquisition of Summer Valley Shopping Center, a 95,669 SF retail center located in the southeast Denver metro area. Essex worked on behalf of the buyer to source the 10-year, fixed rate loan for the acquisition.Summer Valley Shopping Center is currently 99% leased to a diverse group of 18 retailers. The Center is anchored by VASA Fitness, a leading operator of health clubs in the Western U.S. Dollar Tree is the junior anchor. The Property sits on an 8.7-acre site at the highly trafficked intersection of East Quincy Avenue and South Buckley Road. More than 62,000 vehicles travel this intersection daily...

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Hines’ Quantum 56 Industrial Park Breaks Ground

The first phase at Quantum 56, a Class A, six-building, 868,360-square-foot industrial park situated west of I-25 on 56th Ave, developed by Hines, has broken ground. Phase I, featuring three buildings totaling 581,250 square feet of warehouse/manufacturing space, is set to be completed in Q2 2024.Quantum 56 is designed by Ware Malcomb and is being constructed by Arch-Con Corporation.Essex Financial Group secured the construction loan for Phase I. The loan was provided by one of Essex’s correspondent life insurance company relationships.Jason White, Mitchell Zatz, and Carmon Hicks of JLL will lead the leasing efforts on behalf of Hines. Essex’...

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Cast a Wider Net, Get Creative as Lenders Slow their Pace

We have reached the halfway point for 2023, and what a year it’s been … so far.The first six months of the year brought hasty interest rate hikes, confused capital markets, volatility industrywide, new lender underwriting parameters, and a lot of unanswered questions about the future. Yet, despite all these factors, lenders who were in the market and active (primarily life companies and agencies) found a way to get capital out the door efficiently, to get a head start on their annual allocations. We were seeing sales transactions move forward (albeit at lower levels compared to 2022) and had proactive borrowers getting ahead of pending maturities 12 to 24 months out, not knowi...

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Insurance Companies Provide Best Liquidity Today

The insurance companies are currently providing the best, most attractive liquidity for industrial real estate assets in today’s uncertain economic times. Period. Here’s why:Steady source of liquidity. Insurance companies reinvest monthly premiums from policy holders into several fixed- income assets. The investment target allocations for these policy premiums have historically been ~40% stocks, ~40% bonds, ~15% commercial real estate (mainly focused on direct commercial mortgage loans) and ~5% alternatives. Despite the lost liquidity within the commercial banks – due to a shrinking deposit base, lack of loan payoffs, and increased regulation – monthly premiums paid by insuran...

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Navigating Today’s Challenging Debt Market Can Be Complex

As seen in the Colorado Real Estate Journal May 3, 2023.The debt markets continue to get more challenging to navigate. Interest rate hikes and macroeconomic factors affect each lending source differently, resulting in an inefficient and confusing debt marketplace. This impacts the entirety of the industry, as debt is associated with almost every single commercial real estate property. The majority of commercial real estate professionals have other things to do during the week than keep tabs on the lending appetite and underwriting metrics for hundreds of lenders. Then there’s us. The lucky ones. Mortgage bankers.Here’s one mortgage banker’s perspective on what’s going on in th...

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Essex Arranges $17.0M Acquisition Loan for Lakewood Office Property

Lakewood, CO – Essex Financial Group secured $17.0M of bridge financing for the acquisition of 143 Union, a 191,564 SF, 10-story office property centrally located in the Union Boulevard Corridor in Lakewood, CO. Essex worked on behalf of the buyer, Legacy Real Estate Investments, to source the five-year, fixed rate loan that was provided by an insurance company Essex has a long-standing relationship with. 143 Union, a class A landmark 10-story building occupied was just over 70% occupied to a wide range of tenants that benefit from convenient light rail and vehicular access, walkable retail and restaurants, and upgraded common areas. The property is located in the su...

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Essex Secures a $32M Acquisition Loan for Cherry Creek Mixed-Use Property

Denver, CO – Essex Financial Group (“Essex”) arranged $32.0M in acquisition financing for the purchase of 2nd & Josephine, a four-building, 105,253 SF mixed-use property in the heart of Cherry Creek North. Essex worked on behalf of the buyer, Altus Properties, to source the seven-year, fixed rate loan with a prominent life insurance company. 2nd & Josephine is situated on a ½ city block in Denver’s strongest office market, surrounded by top restaurants, hotels, retailers, abundant new construction and more. The Property is currently 100% leased and anchored by Bank of America and boasts an average historical occupancy of 93% since the last building was built...

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Despite Headwinds, Creative Financing Solutions Available

The capital markets have experienced a rapid transformation over the course of 2022, bringing attention to new themes and trends that continue to unfold. Rising rates, economic uncertainty and record-setting inflation continue to impact the marketplace, including lender appetite. While we don’t want to present a pessimistic outlook, as there is still plenty of demand for mortgages, it is important to be transparent and note the shifts that are taking place. Here are some of the themes and trends we have noticed in this quickly changing environment.What does the lending landscape look like right now? Life companies, banks, conduit lenders and debt funds are asking themselves th...

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