Life Insurance Company
414 14th Street is a stunning renovation of an iconic downtown Denver office building. Originally constructed in 1922, the 3-story building consists of 35,794 square feet and has 42 parking spaces. The Subject Property was originally designed to house the administrative offices for Denver Public Schools (DPS). DPS operated in the building for over 50 years before selling it to the City and County of Denver for the Denver Art Museum's administrative offices. In 2014, the City and County of Denver sold the building to its current owner who completed significant exterior and interior renovations to make the property marketable for 3rd party tenants.
Essex was approached to help source long-term, non-recourse permanent financing for the Subject Property. Although the property was 85% leased, the property was only 70% occupied and would not be 85% occupied until August 2018 (9 months post-closing). Additionally, the borrower wanted to repay an internal partnership loan with new loan proceeds and keep a $1,900,000 tax increment financing (TIF) loan in place.
Essex sourced an $8,200,000 fixed-rate loan with one of its exclusive life insurance company relationships. The loan was used to payoff the existing construction debt, payoff the internal partnership loan, and fund additional capital improvement projects in the building. The loan was funded at 70% occupancy with minimal structure, and the lender allowed the TIF loan to stay in place in a 2nd position.