700 17th Street

Transaction Details

700 17th Street is a multi-tenant, 182,505 square foot 24-story office property located in the heart of Denver’s financial district on the corner of 17th Street and California Street. The Property is located one block from RTD’s 18th & California Station, providing tenants with easy access to Denver neighborhoods located outside the urban core. The Property represents a rare value-add opportunity with below-market rents (more than $5.00/sf below market) and almost 70% tenant rollover in the next four years.

The Proposition

Essex Financial Group was approached by one its long-term relationship clients to arrange non-recourse, long-term financing to re-capitalize the Property. The client wished to increase its ownership stake by investing additional equity from a 1031 exchange while simultaneously refinancing the Property’s exiting debt. Post-closing, the client’s business plan is to continue to operate the Property effectively, and to renew existing tenants at rents closer to market as their leases expire.

Our Solution

Essex arranged a $21,060,000 non-recourse permanent loan with one of its most trusted conduit lenders. The fixed-rate, 10-year loan is 75% LTV and has a competitive interest rate with three years of interest only followed by a 30-year amortization. The loan closed in less than 60 days with the quoted spread and deal terms.