New debt replaces construction loan; project is 90 percent leased
San Diego – CBRE Capital Markets’ Debt & Structured Finance team has arranged an $83.2 million loan for the newly developed Solana Olde Town Station, a 352-unit multifamily property near Denver, CO.
Bill Chiles, Scott Peterson, Morgon Fraser and Brian Cruz of CBRE’s San Diego office secured the Freddie Mac debt on behalf of ReyLenn Properties LLC, replacing the existing construction loan.
The new 334,826 square-foot development at 6875 W. 56th Street is located in Arvada, adjacent to the city’s historic Olde Town District, which features a Park-n-Ride facility and Light Rail station in addition to more than $230 million in recent restaurant and retail additions.
“This property sits in an ideal location due to its connectivity, offerings and abundant nearby retail amenities,” said Chiles. “Not surprisingly, we received a lot of interest from a variety of lenders, including life companies and agencies. Ultimately, Freddie Mac won the business with the most competitive terms, given that the property was still completing stabilization from lease-up.”
The LEED Silver project features a mix of one-, two-, and three-bedroom units ranging in size from 660 square feet to 1,345 square feet and boasts such high-end amenities as a 12,000 square-foot clubhouse with a golf simulator, basketball court, fitness facility, and an outdoor kitchen with a commercial pizza oven. As of October, the property was 90 percent leased with a trend to full occupancy by the end of the year.
According to recent CBRE research, Q3 U.S. multifamily annual demand hit an 18-year high, with demand now outpacing supply. The Q3 vacancy rate fell by 40 basis points year over year to 4 percent. Rent growth improved to an annual rate of 2.6 percent, up from 2.4 percent a year ago.
“Rents and fundamentals in suburban Denver continue to remain outstanding,” said Peterson. “Newly developed assets like Solana Olde Town Station are exceptional long-term investments. The decision for ReyLenn to hold the property illustrates just this point.”CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
