As Seen In – July 23, 2015

1886 Prairie is one of seven light industrial buildings at Colorado Technology Center that were part of the Refinancing deal.

NorthMarq Capital’s Denver office has arranged a $59.05 million loan for Colorado Technology Center Portfolio, LLC, a borrowing entity controlled by Etkin Johnson Real Estate Partners. The collateral is comprised of seven light industrial buildings totaling 631,135 sq.ft. located on approximately 46.4 acres. The buildings are located in Colorado Technology Center in Louisville, CO and were constructed from 1998-2008. The buildings range in size from 64,672 – 130,182 square feet. The class A buildings have 24 foot clear ceiling heights, front facing office areas, and rear dock high and drive-in loading. Many of the buildings are improved with climate control systems for the production/warehouse space. At the time of closing the portfolio was 100% leased to 14 tenants.

The NorthMarq team that arranged the financing was led by Steve Bye, executive vice president/senior managing director and Conor McCahill, investment analyst.

“The loan was arranged with a major investment bank through a commercial collateral mortgage securitization execution (CMBS),” explained Bye. “Etkin Johnson Real Estate Partners was seeking loan proceeds that met the strategic long term needs of the partnership. The non-recourse loan structure involved a 10-year fixed rate term with interest-only payments for 3 years, followed by a 30-year amortization schedule.”

“The NorthMarq team was terrific in their execution of the deal, from initial term sheets to helping choose a lender and through closing,” said Derek Conn, director of finance for Etkin Johnson. “They played a vital role throughout the entire process.”

Colorado Technology Center is a master-planned business park in Boulder County with access directly off the Northwest Parkway via US 36. Close proximity to Boulder and Denver provides an excellent balance of business support services and quality of life considerations in one of the most sought after locations in the area.

“The CTC has proven to be very successful for Etkin Johnson,” said Conn. “The unique aspects of the submarket coupled with our best-in-class management, preventive maintenance and responsive service, have ensured sustained tenant loyalty and long-term success for the business park.”

Etkin Johnson’s leasing team, led by executive vice president and partner Ryan Good, has effectively captured prospective tenants who have moved down the US-36 Corridor from Boulder. This “Boulder Effect” has driven tenants who can no longer afford Boulder rents to Louisville while allowing them to remain in Boulder County.

“The portfolio’s high occupancy level along with the low interest rate environment that is not expected to continue made this an ideal time to refinance,” said Conn.

Etkin Johnson was able to secure a 4.64% interest rate for 10 years and return all invested capital to its investors. Additionally, the financing will generate an average of $2 million in net cash flow annually over the life of the loan. Etkin Johhson Real Estate Partners is a Denver-based commercial real estate development, investment, ownership and management company with a portfolio of more than 5 million square feet of office, industrial and hotel holdings worth in excess of $500 million.

NorthMarq Capital, the largest privately held commercial real estate financial intermediary in the U.S., provides debt, equity and commercial loan servicing through its 36 offices across the U.S.