Park IV Industrial Center

Transaction Details

Park IV Industrial Center is a warehouse complex located in Commerce City, Colorado with excellent access and visibility to both I-70 and I-270. The first building on the property was developed in 2007. The owner/developer wished to complete the project by building two more multi-tenant office/warehouse buildings that cater to users that require less than 85,000 square feet. One building will be 35,000 square feet with 7 dock high and 7 drive in bays. The other building will be 50,000 square feet with 10 dock high and 10 drive in bays. Both buildings will feature 24’ clear height with an average of 10% office finish. Each building will be fully sprinklered.

The Proposition

Essex was approached by its private capital client to arrange a construction/mini-perm loan with one of its commercial banking relationships. The client’s objectives were to achieve a 75% loan-to-cost that would allow it to construct the buildings and begin leasing activity during construction. The client required maximum flexibility to refinance the development upon completion and lease-up. There was no pre-leasing in place and Essex needed to present a compelling case that the strong demand exists in the Denver industrial market for small tenant office/warehouse space.

Our Solution

Essex Financial arranged an 18 month construction draw note complemented by a 36 month mini-perm note. The loan amount is 75% of cost at a competitive interest rate. Essex successfully built the case that this property type would quickly lease up in a tight market and convinced the bank that there is strong demand in the permanent loan market to pay off the bank upon property stabilization.