May 19, 2019
Prime Rate
Photo of Firestone Meadows
Property Type
Transaction Details

$15,000,000 Permanent
Life Insurance Company

Transaction Name
Firestone Meadows
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Transaction Details

This transaction financed Phase I of the Firestone Meadows Apartments, a newly-constructed multifamily property located approximately 2 miles east of I-25 in Firestone, CO. Phase I consists of 120 units, comprised of one, two, and three bedroom units and community amenities such as a fitness room, pool and spa, a playground, and a dog park.

The Proposition

Essex Financial Group was hired by the Sponsor to source long-term non-recourse debt to recapitalize the project. Given the rising interest rate environment, the Sponsor was eager to lock rate on permanent debt, despite the fact that the property was not yet fully completed or stabilized.

Our Solution

Alex was able to lock a highly competitive interest rate for the Sponsor within one week. Essex originated a $15,000,000 permanent, non-recourse loan with one its correspondent life insurance company relationships. The loan was funded with a minimum occupancy hurdle and minimal short-term recourse until the property stabilizes. The Sponsor has historically been an agency Borrower, but our life company was able to offer a faster execution with a tighter interest rate, and two years of interest only.