Glory Apartments

Transaction Details

Glory Apartments is a class C, multi-family garden property on the outskirts of Denver. Glory consists of two adjacent three-story apartment buildings offering 47 apartment units and totaling 29,000 rentable square feet. Glory provides an affordable option in a city of consistently rising rental rates. At the time of closing, the property was 98% occupied.

The Proposition

Essex’s client acquired Glory as a value-add opportunity in an ever-tightening multi-family Denver market. The borrower had a significant capital improvement budget in order to complete substantial unit renovations. The borrower acquired the property as a cash flow play; however, wanted prepayment flexibility if they decided to sell the property.

Our Solution

Essex Financial Group arranged $2,560,000 in loan proceeds, an 80% loan to value with an agency lender. The non-recourse hybrid loan offered the borrower max proceeds, a fixed interest rate for 7 years, 2 years of interest only followed by a 30 year amortization schedule, and flexible prepayment. At the end of 7 years, the interest rate adjusts to a floating rate. Essex closed the deal in less than 60 days and met the client’s contract closing date.