Denver Office Project Lands Construction Loan
- Mar 23, 2020
A construction loan is keeping the spark going at a master-planned neighborhood development in Boulder, Colo. S’Park Railyards has received $29.4 million in construction financing from Wintrust Financial Corp. JLL Capital Markets has arranged the five-year, floating-rate construction loan for the joint venture of The John Buck Co., Kinship Capital and Element Properties, which are building S’Park Railyards and the master-planned S’Park neighborhood, where the upcoming project is located.
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JLL Capital Markets’ Keith Largay, Brian Walsh and Leon McBroom led the team representing the borrower. McBroom told Commercial Property Executive that Railyards began construction in the fall. The 69,263-square-foot property located at 3401 Bluff St. is expected to be complete by March 2021. The four-story S’Park Railyards will offer 64,000 square feet of Class A offices that have layouts designed with 25-foot spans between columns, while the remaining 5,263 square feet is designated for ground-floor retail. McBroom also told CPE that Railyards is currently 92.4 percent leased to one tenant, who he declined to identify.
Railyards is also close to public transportation, being two blocks away from Boulder’s new Rapid Bus Transit Station and next to a future Northwest Rail Line Station. JLL added that Boulder was one of the highest-barrier-to-entry markets in the U.S.
”Boulder has a limited availability of developable land combined with high costs and regulatory barriers,” McBroom told CPE. “This has resulted in very few development opportunities and recent deliveries.”
Six buildings of S’Park
Railyards is only the fourth building that’s part of the master-planned S’Park community. The neighborhood spans six buildings and includes 288 multifamily units, 106,029 square feet of office space, 31,363 square feet of ground-floor retail and 350 parking spaces. The remaining two buildings are expected to break ground by the end of 2020.
S’Park will also include Market, a mixed-use development with 30,000 square feet of offices on three floors and restaurant and retail space. The neighborhood also includes luxury rentals and townhomes, boutique-style apartments and affordable housing properties.