Meridian Capital Group, America’s most active dealmaker, arranged $87.5 million in construction takeout financing to refinance a multifamily property in Denver, CO, on behalf of Tessler Developments.
The 30-month loan was provided by a balance sheet lender and features a floating rate of 4.75% over the 30-day LIBOR rate with two 12-month extension options. This transaction was negotiated by Meridian Senior Managing Director, Drew Anderman, and Senior Vice President, Joshua Berman, who are both based in the company’s New York City headquarters.
The Atelier at University Park, a five-story property located at 2450 South University Boulevard, consists of 182,237 rentable square feet spread across 252 apartments ranging from studios to two-bedrooms. Additionally, the building contains 36,065 square feet of ground floor retail space and an attached 500-car parking garage. A newly completed luxury development, all apartments feature quartz countertops, walk-in closets, private balconies, and in-unit washers and dryers. The building also offers its residents a best-in-class amenities package, including an indoor 75 foot pool, a rooftop pool with a spa, a media room, 24-hour fitness center, yoga room, indoor bike storage, and more.
The property is located across the street from the University of Denver, and its proximity to campus and numerous local parks allows residents unfettered access to many cultural, retail, and restaurant choices in addition to myriad outdoor entertainment options. The Atelier at University Park is also three miles south of downtown Denver, which is easily accessible via public transportation and bike paths. The capital and most populous city in Colorado, Denver was named the best place to live in the United States by the U.S. News & World Report in 2016 and is a hub for chef-owned restaurants and live music.
“We were able to leverage our relationships within the floating rate, balance sheet lending market to take out the sponsor’s construction financing at a very competitive rate before the property achieved TCO,” said Mr. Anderman. “The loan reserved for the remaining construction and lease-up costs, which gave the lender comfort while allowing our client to refinance out a much more expensive development loan.
Founded in 1991, Meridian Capital Group is America’s most active dealmaker and one of the nation’s leading commercial real estate finance and investment sales firms. In 2017, Meridian closed over 3,000 transactions across more than 200 unique lenders, encompassing local, regional and national banks, CMBS lenders, agency lenders, mortgage REITs, life insurance companies, credit unions and private equity funds. Meridian represents many of the world’s leading real estate investors and developers and the company’s expansive platform has specialized practices for a broad array of property types including office, retail, multifamily, hotel, mixed-use, industrial, healthcare, student housing and self-storage properties. Meridian is headquartered in New York City with offices in New Jersey, Maryland, Illinois, Ohio, Florida and California.