December 7, 2021
Prime Rate
3.25%
0.10%
1.38%
1.48%

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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Closed Loan Spotlight - Interquest Park

Essex Financial Group has arranged a $34.275 million bridge loan to recapitalize 10125 & 10205 Federal Drive (“Interquest Park”) in Colorado Springs, CO for Flywheel Capital (“Flywheel”).  Loan proceeds are being used to refinance the existing debt, retire preferred equity in the capital stack, and provide additional leasing capital for Flywheel to complete its business plan.  Interquest Park consists of a 191,181 square foot office building and a 97,094 square foot industrial building, both of which were built for Quantum Corporation’s regional headquarters in 1998.  The concrete structures reside on 25.85 acres in Northern Colorado Springs and provide...

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Essex March Loan Closings

Essex Financial Group closed loans totaling $150.5 million in proceeds in March, which represents our most active month since the start of the pandemic. March closings included a variety of property types (medical office, retail, and industrial) and loan structures (permanent, bridge, construction). Highlighted transactions include a bridge loan used to finance the acquisition and future leasing capital for an industrial property in Byhalia, Mississippi placed by a debt fund, the refinance of a medical office building downtown Seattle, Washington placed by a correspondent life company, and the refinance of a new retail center in Parker, Colorado also placed by a corr...

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Closed Loan Spotlight - Central Park Business Center

Essex Financial Group has arranged a $20 million construction loan for Confluent Development to develop the Central Park Business Center, a speculative infill industrial business park that will be located at the intersection of Interstate 70 and Central Park Boulevard.  The 243,950 square foot industrial park is scheduled to break ground in March 2021 and will feature two (2) Class A buildings that will be divisible down to 20,000 square foot bays.  Both buildings will offer a front-park, rear-load design with 60-foot speed bays, dock-high and drive-in loading, 28-foot clear heights, ESFR sprinklers, and a combined 248 parking spaces (over 1 space per 1,000 SF)....

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Essex February Loan Closings

Essex is happy to announce that lender activity is picking up as we start 2021. The month of February was particularly active, as Essex Financial Group closed four transactions totaling $21.1 million. Three of the four properties were located in the Colorado Front Range and included both industrial and office properties. The fourth closing was for long-time client's acquisition of a grocery-anchored shopping center in Savannah, GA, which was a full-term interest only execution. The four loans were all placed with correspondent life insurance companies, and all were non-recourse to the borrowers. Lenders continue to be very active and aggressive in quot...

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Retail Lending Options Set to Improve in 2021

This article appeared in the Colorado Real Estate Journal's Retail Properties Quarterly on February 17th, 2020 LINKRetail investor sentiment appears to be slowly improving as recent economic projections indicate a higher probability of a V-shaped recovery commencing in the next few months.  The cloud of uncertainty will be hanging around for some brick and mortar retailers longer than others with omni-channel sales.  However, some experts are predicting the hardest hit tenants like restaurants and health clubs will come back quickly when occupancy restrictions are fully lifted. Experiential retail is another good example where rapid improvement could result fr...

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