SAN FRANCISCO (January 11, 2018) – Dennis Williams, senior vice president/managing director of NorthMarq Capital’s San Francisco regional office, arranged the $44.6 million loan for Denver Highlands, a 359,919 sq. ft. office property located at 10375 and 10065 East Harvard Avenue in Denver, Colorado. The transaction was structured with a 3-year interest only term. NorthMarq arranged financing for the borrower through its relationship with a bridge lender.
Harbert Management Corporation (“HMC”) and Bancroft Capital acquired Denver Highlands in 2014 and have invested significant capital to reposition the property. Renovations included exterior building improvements, landscaping, renovated lobbies and common areas, new elevators, and desirable tenant amenity space. Denver Highlands is located in the southeast sector of Denver and has an excellent balance of proximity to transportation, retail, and workforce housing thus it is well-positioned to benefit from the strong economic conditions in the Denver Metro area. Now in the lease-up phase, the loan proceeds will be used to pay off the existing loan and fund leasing costs to bring the property to stabilization.
HMC has $4.7 billion in assets under management allocated across a series of diverse and independent investment strategies. One of these investment strategies, U.S. Real Estate, has offices in San Francisco, Birmingham, Alabama, and Dallas. The group has extensive experience in the West, Southeast, Southwest, and Mid-Atlantic.
Based in Manhattan Beach, California, Bancroft Capital is a boutique real estate investment firm with over $500 million in acquisitions to date. For over 25 years Bancroft has formed investment partnerships to purchase office, R&D, lab and warehouse buildings in California, Arizona and Colorado.
“HMC and Bancroft invested in the property as a value-add asset and, just as they were completing the full-scale renovations, they experienced an untimely roll of an existing tenant,” explained Williams. “Ultimately, the new bridge loan enabled the borrower to recapitalize the property which will effectively allow them to complete their business plan.”