Syracuse Hill I

Transaction Details

Syracuse Hill I is a multi-tenant, 82,659 square foot, three-story office property located in Southeast Denver's Greenwood Village submarket. In a highly-competitive market, Syracuse Hill I represents a rare value-add opportunity with below-market rents (rents are more than $6.00/sf below market) and almost 90% tenant rollover in the next four years.

The Proposition

Essex Financial Group was approached by one of its publicly-traded enterprise clients to arrange non-recourse, long-term financing to acquire the Property. The client's business plan is to acquire the Property, continue to operate the Property effectively, and to renew existing tenants at rents closer to market as their leases expire.

Our Solution

Essex arranged a $6,700,000 non-recourse permanent loan with one its exclusive life insurance company relationships. The fixed-rate, 10-year loan has a 25-year amortization and is 65% LTV with a competitive interest rate. With positive debt coverage in place at closing, the Lender did not require capital expenditure or leasing capital reserves, or any additional structure.