January 29, 2022
Prime Rate
3.25%
0.10%
1.82%
1.89%

Essex Arranges $21.4M Bridge Loan for Metro Dallas Industrial Acquisition

Dallas, TX January 5, 2022 - Essex Financial Group (“Essex”) arranged a $21.4 million bridge loan for TT Logistics F1, LP (“Sponsor”) for the acquisition of I-20 Corporate Center in DeSoto, Texas. The 385,472 square foot industrial building is situated in the Southwest Dallas Submarket with access to Dallas and Fort Worth. Prior to the sale, the seller, a Dallas-based operator, signed a long-term 265,248 square foot lease with a global manufacturer.  Essex placed the $21.4M, floating rate bridge loan with a relationship debt fund lender. The loan includes an initial principal balance $20.9M and a future funding facility to finance tenant improvements and leas...

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The Time to Refinance Your Commercial Loan is Now

If you’re on the fence about refinancing, now is the time. After months of discussing the risks of raising interest rates too quickly, the Federal Reserve is changing course and suggesting that it will raise rates sooner than anticipated in response to surging inflation and falling unemployment rates. See the WSJ article below.  We’ll be following next week’s Fed meeting on 12/14-12/15, but “projections are likely to show most of them expect more than one quarter-percentage-point increase next year.” Please reach out to see if we can help you lock in an attractive interest rate—before rates go up.High Inflation, Falling Unemployment Prompted Powell’s Fed Pivot...

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Financing Follows As Market Enjoys a Rapid Rebound

As seen the the CREJ Retail Properties QuarterlyThe strong economic rebound over the summer triggered a rapid recovery in retail investor demand, and this momentum is expected to continue well into next year. Tenants’ sales increased, delinquencies are down, and the majority of landlords are back to pre-pandemic collections. Although headwinds remain with supply chain issues and labor shortages, strong consumer demand is forecast to continue and strengthen in 2022. While some rents are being reset, the majority of recent retail loans we’ve closed indicate pre-pandemic rents are holding or increasing. Retail development historically has been tempered compared to...

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Essex Arranges $40.0M Permanent Financing for Grocery-Anchored Retail Acquisition

Phoenix, AZ – Essex Financial Group (“Essex”) secured $40.0M in financing for the acquisition of Arcadia Crossing, a 450,000 SF grocery-anchored power center in Phoenix, Arizona. Essex worked on behalf of the buyer, a private family office, who has decades of experience in retail investment and management. The retail center was 91% leased at the time of sale and was occupied by a mix of national/credit tenants, in addition to having Costco as a shadow-anchor. Anchor tenants included Fry’s Food & Drug (S&P: BBB), Target (S&P: A), Burlington (S&P: BB), and Conn’s HomePlus. Other national retailers at the five-building property included Ross, Petco and F...

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Essex Arranges $15.3M Bridge Loan for Northern California Industrial Acquisition

Denver, CO November 15, 2021 - Essex Financial Group (“Essex”) arranged a $15.3 million bridge loan for Dalfen Industrial (“Sponsor”) for the acquisition of 6383 Las Positas Road in Northern California. The 106,700 square foot industrial building is situated in the Tri-Valley region with access to both Oakland and San Jose. The Seller, Prism Logistics, has been the sole tenant in the building for more than 10 years. The parties negotiated a sale and short-term leaseback with the seller. Essex placed the $15.3M, bridge loan with a prominent national life insurance company at a competitive rate that was fixed throughout the term of the loan. The loan includes an initial...

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A 2021 Recap of Lending & What to Expect in 2022

Multifamily, to no one’s surprise, continues to be one of the most desired product types in the Denver market and across the country. At roughly $5.9 billion, according to Real Capital Analytics, 2021 multifamily transaction volume year to date already has surpassed the past three years and potentially will set an all-time record. Fundamentals have come back in a tremendous way since the stagnation of the market caused by COVID-19, leading to alltime low cap rates and even more competitive transaction processes.As it continues to be a darling for investors, it is also a darling for insurance company lenders. Insurance companies always have been a strong lending source for mult...

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Closed Loan Spotlight - Heritage I & II

Essex Financial Group arranged a $29 million permanent loan to finance Heritage I & II, an office property located in North Dallas. The Borrower purchased the 367,682 square foot asset in May 2021 in an all-cash transaction. Occupancy at the time of purchase was 73% and the Sponsor has since invested significantly in the leasing, bringing it up to 83% within the first 120 days. The property had recently undergone $7.1M in renovations and upgrades prior to the change in ownership.Essex placed the non-recourse permanent loan with a prominent national insurance company. The 7-year loan features a competitive fixed interest rate with one year of interest-only, follow...

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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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