The Deal Sheet
Maxx Properties refi'd its Denver portfolio of nine multifamily properties (1,830 units) and now gets to bask in proceeds totaling about $140M. The refi will enable Maxx to deal with deferred maintenance and renovate the apartments in order drive higher rents. (If actors are allowed to have work done to increase their profitability, then so are apartment buildings.)
Bassuk Org prez Richard Bassuk says Maxx asked his company to analyze its portfolio and suggest various refi strategies, and it recommended Maxx undertake a renovation program and refi existing mortgages with HUD. (It's certainly a better option than our lemonade stand idea.) Despite the prepayment penalties of the existing mortgages, low interest rates and other factors would make Maxx come out ahead on the deal. HUD sized the new mortgages based on Maxx's renovated rents.
Richard tells us that he anticipates further financing with HUD in the Denver market. The refis are attractive since they mature in 35 years (we'll all be living on the moons of Jupiter by then), have low interest rates, and the “underwriting takes into consideration rents achieved by the project after renovation of the units,” he says—all advantages not available with any other non-HUD lender.
Atlanta-based ARA recently brokered the sale of Rocket, a 24-unit apartment building located at E 18th Gilpin St in Uptown. ARA Colorado’s Justin Hunt, Andy Hellman, and Robert Bratley repped the seller, Boutique Apartments. Saratoga Realty Services, an Illinois-based real estate investment group, acquired Rocket for about $3M, representing a price per unit of $125,400, or a record $291/SF. The property is 100% occupied.
DPC Development acquired the 231k SF Cherry Tower at 950 Cherry St in southeast Denver for $21M. The property, which is near Infinity Park, dates from 1982 and is about 93% occupied.
Denver-based Farmland Partners acquired a 640-acre row crop farm in Morrill County, Neb., for approximately $1M in a sale-leaseback. The buyer intends to sign a five-year lease with the seller, representing the second such deal since Farmland’s IPO in April. The company plans to buy and lease back properties in this way to add to its current holdings of 39 farms in Colorado, Nebraska, and Illinois.
116 Avenue LLC sold 20k SF of industrial space at 7247 West Ave, Broomfield, to Wilson Investments for $2.2M. Cassidy Turley’s R.C. Myles, James Brady, Chris Ball, and Brandon Ray repped the seller, while Olympic Partners’ Steve Mimnaugh repped the buyer.
Alberado Properties sold a 20k SF industrial building at 4901 Vasquez Blvd in Denver to Detail Holdings for $1.6M. Cassidy Turley’s Craig Myles, R.C. Myles, and James Brady repped the seller, while Abbas Rajabi of Cyrus and Associates repped the buyer.
California-based Lineage Logistics acquired the 473k SF 8001 E 88th Ave in Henderson for $37M from Capital World Leasing. The property, now a multi-tenant warehouse, was formerly a cold storage facility.
CONSTRUCTION & DEVELOPMENT
The Regional Transportation District (RTD) of the State of Colorado tapped a JV of Hill International and Triunity Engineering & Management to provide construction management support services for RTD's FasTrack Program. The contract, which has a six-year base term plus four one-year option terms, has an estimated value to the JV of more than $15M. Triunity is a 51% partner in the JV, and Hill is a 49% partner.
Quiznos leased 30k SF of office space for its corporate HQ at 7595 Technology Way in Denver from LBA Realty Fund II. Cassidy Turley’s Ted Harris and Travis Young repped the sandwich chain in the deal.
In two other deals, Glen and Jean Johnson Co leased 1,340 SF of office space at 4025 Automation Way in Fort Collins to Assurance Roofing Co. Jason Ells of Cassidy Turley repped the landlord. Separately, Ruff Windsor Building leased 1,152 SF of office space at 8201 Spinnaker Bay Dr in Windsor to Entity Sports and Wellness. Cassidy Turley’s Jason Ells and Nate Heckel repped the landlord.
HFF obtained $34M million refi for Prana Apartment Homes, a 254-unit property in Lafayette, Colo. HFF repped the borrower in the deal, Stratford Prana, placing the 10-year, 4.74%, fixed-rate loan with Fannie Mae through HFF’s correspondent relationship with M&T Realty Capital Corp. The forward rate lock refi replaced a significantly higher rate HUD loan, which was closed to prepayment until May 2014. Prana Apartment Homes is at 550 Viridian Dr, and includes 11 buildings with one-, two- and three-bedroom units averaging 990 SF each. The property is more than 96% occupied. The HFF’s Josh Simon, Eric Tupler, and Chad Murray worked on the deal.
Separately, HFF arranged a $17M participating mortgage for the ground-up development of the 101-unit Lofts at Lincoln Station. The property is at 9365 Station St, adjacent to the Lincoln Station light rail stop. HFF repped two Colorado Springs-based developers in the deal.