Life Insurance Company
Carrara Place is a large floor plate, Class A office building located in the heart of Greenwood Village. Developed in 1982 by iconic Denver developer John Madden, Carrara Place consists of 237,681 square feet of net rentable area and features a continuous glass-line framed by Italian Carrara marble. The property is currently 99% leased; however, some near term rollover in the rent roll exists.
Essex Financial Group was approached by its client to help arrange acquisition financing in accordance with the client’s business strategy. Essex’s client’s objectives were to maximize loan proceeds, fund future capital expenditures, fix a low interest rate for seven years, and have the ability to prepay early without penalty upon stabilizing the rent roll.
Essex arranged a creative A/B Note structure that totaled 90% of the total capital stack with one of our correspondent life insurance companies. A portion of the proceeds were held back at closing to be used for future capital expenditures. The 7-year fixed rate loan offered a highly competitive blended rate, two years of interest only followed by a 25-year amortization schedule, and very flexible prepayment. By obtaining 90% leverage, Essex’s client was able to undertake the acquisition internally, keeping their cost of capital low by avoiding more costly external equity. Essex closed the loan in 45 days and met the client’s contract closing date.