Top 10 Lenders of 2017 in the Denver Office Market
- Apr 10, 2018
Denver’s economic diversity, strong market fundamentals and consistent growth have contributed to the metro’s substantial real estate market expansion. As a well-established market driven by technology, energy and telecommunications, Denver’s office sector appeals to companies in a tenant-favorable environment.
Many landlords looking to attract prospective tenants and keep existing ones turn to loans in order to finance their various capital improvement programs or refinance prior acquisition loans. Yardi Matrix has compiled a list of the most active lenders in Denver, with a focus on total loan amounts originated for office properties in the previous year.
10. Securian Financial Group
Founded in 1880 and based in St. Paul, Minn., the financial group originated a $25 million portfolio loan for Menashe Properties’ approximately 570,000-square-foot Aurora Marketplace office complex. Located in Aurora, Colo., the portfolio includes six properties acquired by Menashe in December 2016. The mortgage carries a seven-year term and is set to mature in September 2024.
9. FirstBank (Lakewood, CO)
Colorado’s second-largest bank by deposits provided five loans for office properties totaling roughly 435,000 square feet. Amounting to $34.4 million, the mortgages financed properties built between 1982 and 2001. The largest asset of the group, Ogilvie Properties’ single-story structure located at 1090 W. Hampden Ave. in Englewood, Colo., used to be an industrial facility until being transformed into an office building in 2001.
The global financial services firm is the result of the 2016 merger of MassMutual’s four affiliates: Barings Asset Management, Babson Capital Management, Wood Creek Capital Management and Cornerstone Real Estate Advisers. In 2017, the asset management giant funded Balfour Pacific’s seven-property portfolio purchase with $65 million in acquisition financing. The loan is scheduled to expire in June 2021.
7. JPMorgan Chase
The largest bank in the U.S., JP Morgan Chase originated more than $80.6 million in financing last year for six assets comprising almost 1.1 million square feet spread out in the metro area. The largest loan totaled $32 million and financed Gemini Rosemont’s Diamond Hill Office Complex located at 2490 W. 26th Ave. in Denver. The mortgage carries a five-year term and is scheduled to mature in April 2022.
6. Bellco Credit Union
Founded in 1936 and headquartered in Greenwood Village, Colo., the credit union financed four office assets with a total loan amount of $47.9 million in 2017. Encompassing roughly 627,000 square feet, the properties are mostly located in Greenwood Village. The most notable mortgage is the $66 million portfolio loan provided for John Madden Co.’s Fiddlers Green Center, a two-building office complex delivered between 1998 and 2000.
5. Goldman Sachs
The multinational company originated an $83 million portfolio loan in March 2017 for the financing of three buildings in Angelo, Gordon & Co.’s CH2M Hill Campus. The LEED-certified office complex is located in Englewood, Colo. Goldman Sachs assigned the mortgage to Wells Fargo Bank in July 2017, transforming it into a CMBS loan. The long-term financing carries a 4.8 percent interest rate and a maturity date scheduled for April 2017.
4. Bank of America
The second largest bank by assets in the U.S., Bank of America originated financing for two office properties in Denver last year, the total loan amount adding up to $108.5 million. The largest mortgage provided for a single property on our list is the $93.5 million loan taken out by Goldman Sachs Asset Management for its 25-story office tower located at 1125 17th St. The roughly 500,000-square-foot property formerly known as The Bank One Tower is LEED Silver certified.
3. Annaly Capital Management
The New York City-based REIT provided a $112.4 million portfolio loan for the financing of HighBrook’s Denver West Office Park located in Lakewood, Colo. The mortgage incorporates 18 buildings consisting of more than 1.5 million square feet. Set to expire in August 2020, the short-term mortgage refinanced a previous $79.5 million acquisition loan.
2. Wells Fargo Bank
The world’s second-largest bank by market capitalization, Wells Fargo Bank originated nearly $184 million in financing last year. One of the most notable loans is the $125.4 million mortgage for Crescent Real Estate’s 11-property portfolio comprising more than 787,000 square feet of office and 115,024 square feet of industrial space in the metro area. The bank also provided $48.6 million in financing for Buchanan Street Partners’ Legacy Center DTC located in Greenwood Village, Colo.
Founded as the City Bank of New York in 1812, Citibank underwent several transformations before arriving at its current configuration under the umbrella of parent company Citigroup. The bank made the top of our list with the largest loan amount originated last year in the Denver metro area. Citibank provided nearly $362 million to finance a total of four office properties. Originally a Citibank financing, a $330 million BioMed portfolio loan has been assigned to Wilmington Trust and is now a CMBS loan set to expire in May 2019.
Images courtesy of Yardi Matrix