190,000 SF Office Acquisition - Colorado Springs, CO
$20,000,000 loan arranged by PlattPointe Capital.
COLORADO SPRINGS, CO - PlattPointe Capital arranged a $20MM non-recourse value-add acquisition loan for an office portfolio in Colorado Springs, CO. The two buildings are comprised of 190,000 square feet of leasable space having had low historical improvement costs and high tenant retention histories.
PlattPointe was able to close the financing in seven days to meet the purchase deadline. The structure was a $20MM interest-only loan through the lease up and stabilization period.
• $20,000,000 loan amount
• 24-month interest only loan
• Non-recourse to sponsorship
• L+ 625 Rate
The portfolio is comprised of tenants in the Aerospace, Government and Military/Defense Contractors, Technology and Healthcare sectors providing an excellent value-add opportunity to the sponsor. This offering represents two of Colorado Springs’ highest quality and most strategically located office buildings. At this time, the top-end lease rates being achieved for quality suburban office space are dampening the demand for new construction.
The sponsor sought to capitalize on the strong market characteristics of Colorado Springs which has become less subject to economic downturns due to a heavy concentration of businesses related to the defense, technology and healthcare sectors.
Colorado Springs rapid growing economy is highly diversified and stabilized by a mix of government and private employers with a special niche to the homeland and satellite defense sectors as well as a growing sports-based economy. The access to the Colorado Front Range, proximity to Denver, low cost of business operation and educated workforce are all contributing factors to this high-growth market.
About PlattPointe Capital:
PlattPointe Capital LLC is a boutique commercial real estate capital advisory firm that helps developers and investors navigate the capital markets by arranging optimal alternative debt and equity options for a client’s project. Our vision is to engineer the most efficient capital stack based on the constraints of a given project and sponsor’s needs.
More information can be found at www.plattpointe.com.
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TRANSACTION BY THE NUMBERS
Square Feet of Office
Days to Close