Lenders might be more reluctant to finance new apartment construction than they were a year ago, but for properties in strong locations, they are still interested. That is especially the case in a market like Denver, which is a recipient of in-migration.
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CBRE Capital Markets, Debt & Structured Finance in Denver secured a $42.5M construction-to-permanent loan on behalf of developer Confluence Cos. for the development of Timberline Farms, a 314-unit, multifamily community at 11700 West 58th Ave. in Arvada.
Interest in the property was particularly strong among HUD and life company lenders, according to CBRE's Michael Cantwell, who facilitated the loan along with colleague David Treadwell. According to the developer, the suburban property will appeal to young families and empty nesters. Arvada is in a growth mode, with its population up 8.4% in the last five years, to more than 115,000.
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Confluence obtained a 10-year loan that amortizes on a 30-year schedule and carries a sub-5% rate from an unspecified correspondent lender.
The developer is no stranger to the Denver market. Confluence has completed 21 multifamily projects in the Denver metro area since 2010, totaling more than 2,100 units, and has five other projects in development or under construction.
Construction at Timberline Farms kicked off recently. Its first building is slated to deliver in Q2 2018, and the last one by Q2 2019.
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