NorthMarq's Steve Hollister secures $7.5 million refinance of office building in Denver, Colorado

BOISE, IDAHO (April 29, 2021) - Steve Hollister, senior vice president of NorthMarq’s San Diego and Boise offices, arranged the $7.5 million refinance of an office building located in Denver, Colorado. The transaction was structured with a 15-year loan fixed for 3-year intervals on a 15-year amortization schedule. NorthMarq negotiated the refinance for the borrower through its correspondent relationship with a life insurance company.

The loan structure provides for an initial funding of $5 million with an additional $2.5 million of earn out proceeds available if the occupancy is increased in the first two years. The loan allows for a par prepayment at the end of every 3-year fixed rate term, giving the borrower desired prepayment flexibility. There are no financial or property performance covenants, reserves or escrows required.

The 4-story, multi-tenant office building contains 84,232 sq. ft. and is currently 63 percent leased to a single tenant. The interior and exterior of the asset were completely renovated recently when the asset was converted from a single tenant building into an updated and fully renovated multi-tenant building with top quality improvements and amenities.

“The life insurance company that provided this loan refinanced their existing loan,” said Hollister. “The lender was comfortable lending on a 63 percent occupied, single tenant office building due to the quality of the location and asset, the relationship with the borrower and the modest leverage.”