Approximately 73% of the cost of the Alexan Prospect is beingfunded with a $70.5-million construction loan from KeyBank NationalAssociation. For its share of the project's equity requirement, theREIT and its partner, Dutch pension fund Stichting PensioenfondsZorg en Welzijn paid Trammell Crow $7.36 million (7.8% of theoverall cost) in cash and provided a $14.8-million mezzanine loan(15.6% of overall cost) for the project which bears interest at10%. Upon completion of the Alexan Prospect Project, TheBehringer-PGGM partnership has the option to convert the mezzaninenote to a capital contribution, according to SEC filings.

The 367.433-sf (net rentable) development will rise at theintersection of Inca and 20th streets, between Coors Field and theriver. The site is near both Interstate 25 and historic UnionStation, which is being redeveloped to serve as a multimodal,regional transit hub where light rail, commuter rail and buses willconverge. The overall Central Platte Valley redevelopment willinclude millions of sf of residential, office, retail, restaurantsand hotels.

TCR typically directs its developments in partnership withvarious equity partners. TCR acquires the property using equityfrom the partner while taking anywhere from a 0% to 10% equityinterest in the project. It then handles the entire process, fromgovernmental approvals through construction and lease-up. For itseffort, in addition to development and management fees, ittypically gets a substantial percentage of the back-end profit fromthe sale of the stabilized asset.