September 25, 2021
Prime Rate
3.25%
0.09%
1.44%
1.47%

Office Is the New Alternative Asset Class for Lenders

Featured in the Colorado Real Estate Journal's Office & Industrial QuarterlyThe delta variant has proven to be a major curveball for office tenants who optimistically planned for a post-Labor Day return to the office. While some companies have stayed the course and welcomed employees back to their cubicles, others have prolonged their work-from-home policies indefinitely. For now, a hybrid plan is keeping the office market in limbo. Investors and lenders remain hesitant on the asset class as a whole, so much so that office is the new alternative asset product. With capital flooding the market, lenders have flocked to COVID-19-era darlings, industrial and multi...

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Essex Financial Group Arranges $75M Refinancing for Medical Dental Building in Seattle

As seen in RE Business OnlineSEATTLE — Essex Financial Group has arranged a $75 million permanent loan for Menashe Properties to refinance Medical Dental Building, an infill medical office building in downtown Seattle. The sponsor purchased the 297,470-square-foot historic building in 2019 and assumed existing debt on the property.The seven-year loan features a fixed interest rate with three years of interest-only payments followed by a 30-year amortization. Alex Riggs and Blaire Butler of Essex Capital Markets secured the financing for the borrower.Originally built in 1924, the 18-story office building has undergone several renovations with the most recent completed in 2014....

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Lending is on the rise across asset types with varied trends

This article appeared in the Colorado Real Estate Journal's August 18th Publication LINK As we enter the second half of the year, the debt and equity markets continue to be very active, albeit with some lingering areas of caution brought about by the pandemic. Below are some key takeaways through the first half of 2021. Life company allocations update. At the start of 2021, annual life insurance company mortgage allocations generally mirrored 2020 year-end figures, reflecting a steep decrease from original 2020 allocations. The conservative projections reflected continued uncertainty surrounding the timing of the economic recovery, the distribution of vaccines, and...

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Essex secures $17.16M bridge loan for suburban office acquisition

Centennial, CO (August 2, 2021) - Essex Financial Group (“Essex”) recently secured a $17,155,000 non-recourse bridge loan with a national debt fund for the acquisition of 9110 East Nichols Avenue (“Highland Place II”) by Centre Point Properties. The 3-year, floating rate loan included future funding proceeds to modernize the building, spec out vacant space, and lease up the Property. The interest-only loan also allowed the borrower to use Property Assessed Clean Energy (PACE) financing to upgrade the building’s energy efficiency. Highland Place II is a 3-story, 141,000 square foot multi-tenant office building located in the heart of Southeast Denver’s suburban office...

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Essex Financial Group promotes its first female partner

Essex Financial Group promoted its first female partner, advancing longtime team member Alex Riggs.After several years at Essex working as a producer and with years of extensive capital mar­kets and underwriting experience under her belt, Riggs joined the ranks of several male partners at the firm.Before joining Essex, Riggs pre­viously served as the originator for the Central and Northeast Regions of Pru­dential Mort­gage Capital Co. and originated more than $1.59 billion across all of Prudential’s capital sources. The asset types she specializes in include stabi­lized and pre-stabilized multifam­ily, grocery-anchored retail, hospi­tality, industrial and Class A offic...

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Essex Sources $6,000,000 Loan on Colorado Springs Industrial Building

Colorado Springs, CO (July 15, 2021) – Essex Financial Group (“Essex”) recently arranged a $6,000,000 non-recourse loan to refinance the existing debt 1610 Garden of the Gods Road.  Essex originated the loan with one of its life insurance company relationships, and the 15-year term came with a very competitive fixed interest rate.  The new loan was used to refinance a bank loan, return equity, and fix the debt constant for a long-term holding period.        1610 Garden of the Gods Road is a 104,000 square foot industrial building that was built in two (2) phases between 1979 and 2000.  The building features 18-2...

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Essex sources $18,400,000 bridge loan for portfolio acquisition in Westminster

Westminster, CO (June 24, 2021) – Essex Financial Group (“Essex”) has secured an $18,400,000 bridge loan for the acquisition of 7237, 7401 and 7403 Church Ranch Boulevard (“Church Ranch Portfolio”) by a joint venture between CWCapital Investment Management (“CWCapital) and Kenai Capital Advisors (“Kenai”). The loan proceeds were used to acquire the three properties and one development parcel, and fund future leasing capital to stabilize the buildings and manage future lease renewals.     The Church Ranch Portfolio is comprised of three single-story, institutional quality office / flex buildings situated on 12.6 acres in a campus like setting located directl...

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Industrial Financing Themes

It’s starting to become old news to say it, but industrial properties continue to be the most desired product type among investors and lenders. As logistics, technology, e-commerce and construction services companies continue to be such important parts of our economy, the industrial real estate markets continue to flourish. We have worked on a wide range of industrial property financings this year, and we would like to share some frequently asked questions and key financing themes that have come up on recent deals.Question: We recently completed a Class A industrial development and already are 75% leased within six months of delivery. Is it too early to explore the permanent...

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Closed Loan Spotlight - Denver Airport Business Park

Essex Financial Group arranged a $9 million permanent loan for BD Omni #1, LLC, a Colorado limited liability company co-managed by H. Dean Properties and Benitez Asset Management, LLC to refinance Denver Airport Business Park, an industrial flex property located in the airport submarket of Denver, CO. BD Omni #1, LLC purchased the three-building portfolio totaling 91,500 square feet in 2014.Essex placed the $9M permanent loan with a national credit union in a cash-out refinance transaction. The 10-year loan features a competitive fixed interest rate with three years of interest-only, followed by a 30-year amortization. The loan is open to prepayment throughout the li...

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Structured finance for multifamily is more active than ever

This article appeared in Colorado Real Estate Journal's Multifamily Properties Quarterly Issue in May 2021.    LINKMultifamily continues to be the darling of commercial real estate, with both debt and equity chasing a limited number of transactions. While acquisition prices continue to set new records, the affordability of debt allows the deals to pencil.  Within the last two months, we have seen life companies and debt funds alike aggressively compete for structured finance opportunities in order to increase their exposure to multifamily. While in recent weeks treasuries have started to tick up, all-in coupons remain extremely attractive. The follo...

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