November 21, 2017
Prime Rate
4.25%
1.29%
2.35%
2.33%
Photo of The Bentley
Property Type
Multi-Family
Transaction Details

$24,500,000 Permanent
Life Insurance Company

Transaction Name
The Bentley
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Transaction Details

The Bentley is an institutional-quality, multi-family apartment community located in Lakewood, CO. The 12-building, 300-unit community was developed by the Carmel Companies in 1999 and has a full amenity package, including a newly-renovated clubhouse, fitness center, and swimming pool.

The Proposition

Although institutionally-owned and managed since 1999, the Subject Property represented an opportunity to upgrade the units and increase the rents. An institutional client of Essex's acquired the Bentley with plans to complete substantial unit renovations in excess of $6,000/unit. Although the strategy was to complete the unit renovations within 24 months and sell the asset immediately upon increasing the rents, the institutional client wanted to fix an interest rate to give flexibility to the business plan.

Our Solution

Essex arranged a 5-year fixed-rate loan for the acquisition of the Bentley. The 5-year loan had an interest rate of 3.15% with two (2) years of interest-only payments, followed by a 30-year amortization.