DENVER and SEATTLE – September 15, 2021 – Berkadia announced today the sale of and financing secured for Mile High Place, a 60-unit midrise multifamily property in Denver, Colorado. Senior Directors Nick Steele and John Laratta and Associate Directors Tyler King and Nate Moyer of Berkadia Denver completed the $17.5 million sale on behalf of the seller, Colorado-based Highland Builders and Design, LLC., and the buyer, California-based Cohen Rojas Capital Partners. The deal closed on August 27.
Managing Director Jeff Stuart and Associate Director Ian Stuart of Berkadia Seattle secured a $13.125 million acquisition loan on behalf of the buyer, Cohen Rojas Capital Partners. California-based Thorofare Capital, a balance-sheet bridge and construction lender specializing in Opportunistic, Value-add, Core+ and Ground-up Construction financing executions in markets nationwide, provided the financing. The 24-month pre-stabilized bridge loan was sized to 75 percent as-stabilized loan-to-value and was able to close prior to issuance of the temporary certificate of occupancy (TCO).
“The sale and financing of Mile High Place was a great execution for the buyer and seller,” said King. “Selling the property prior to the temporary certificate of occupancy allowed the buyer to place the property in service as a Qualified Opportunity Zone investment, allowing the investors to defer, reduce and eliminate capital gains taxes. Interest in the asset increased dramatically with pending tax changes anticipated in 2022 and beyond.”
“In today’s environment, many bridge lenders would hesitate prior to lending on a vacant, pre-stabilized or pre-TCO asset, despite a top-tier Denver, Colorado location and strong sponsor,” said Ian Stuart. “However, Thorofare Capital was able to deliver strong, 75 percent loan-to-value bridge financing with ease, all while being highly communicative, transparent, and easy to work with. They provided our mutual client with an incredible execution, and we couldn’t be more thrilled with their performance.”
Mile High Place is located at 1586 Hooker Street and features studio, one- and two-bedroom floor plans with in-unit washers and dryers and stainless steel appliances. Community amenities include a fitness center and a rooftop deck. Residents will be afforded convenient access to Downtown Denver, Interstate 25 and the shops and restaurants along Federal Boulevard.