October 18, 2018
Prime Rate
5.25%
2.28%
3.21%
3.23%
Photo of Red Owl & Alchemy
Property Type
Mixed Use
Transaction Details

$12,100,000 Bridge
Life Insurance Company

Transaction Name
Red Owl & Alchemy
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Transaction Details

The Subject Property is a mixed-use development located in Denver's popular West Wash Park neighborhood. The Subject Property includes 46 Class A apartments and 12,000 square feet of commercial space. The 12,000 square foot commercial space is leased to Alchemy, a landlord affiliate and new co-working concept.

The Proposition

Essex was approached in November 2017 to help the developer refinance its construction debt at temporary certificate of occupancy with a new bridge loan. The borrower had a maturing loan during Q1 2018 at the same time the property was finishing construction and starting lease-up.

Our Solution

Essex originated a $12,100,000 non-recourse bridge loan to refinance the construction debt, return a small amount of capital to the borrower's limited partners, and allow more time for the property owner to lease-up, stabilize, and season the asset. Essex sourced the loan with one of its close life insurance company relationships, and the lender funded the loan at temporary certificate of occupancy with no pre-leasing requirement.