Sloan's 1525

Transaction Details

Sloan’s 1525 is a two-building, mixed-use property located within the St. Anthony’s Hospital redevelopment in Denver, CO. The infill, adaptive re-use project consists of a 5-story, 50,000 square foot office building that was constructed in 1972, and a 6,000 square foot in-line retail building that was recently-constructed by LCP Development. The 50,000 square foot office building was once used for medical and administrative offices for St. Anthony’s Hospital, but has been vacant since 2010 when St. Anthony’s relocated its operations to a new 560,000 square foot campus in Lakewood, CO.

The Proposition

Essex Financial Group was approached by one of its private capital clients to help finance the acquisition and lease-up of Sloan’s 1525. Although a significant remodel was recently completed on the office building, the client was acquiring the Subject Property prior to stabilization and completion of the seller’s business plan.

Our Solution

Essex Financial Group originated a short-term, $10,250,000 non-recourse loan with a local bridge lender. The loan facility includes initial funds to acquire the Subject Property, plus 100% of the anticipated leasing capital to stabilize the project. The 3-year term has a competitive fixed interest rate and two (2) 1-year extension options. Essex also helped arrange a $1,237,500 loan from a regional bank to acquire the TIF revenue stream associated with the project.