The $15.1-million loan takes out the construction loan for the property, a loan that presumably had been extended given that the complex was completed in 2003. Terms of the financing include a seven-year Capped ARM loan term with a starting interest rate of 4.45% and a flexible prepayment structure. CBRE Capital Markets' Mike Eatser, one of the brokers in the deal, tells GlobeSt.com that the loan-to-appraised-value was approximately 60% and that the debt service coverage requirement is 1.2-to-1. Easter arranged the financing with fellow CBRE Capital Markets Denver brokers Eric Tupler and Josh Simon.

Easter says the loan structure provides the borrower the ability to take advantage of an extremely low starting interest rate today, while minimizing their risk of increased rates over the life of the loan. It also provides flexibility in the borrower's investment strategy by allowing them to prepay the loan after year one with a minimal fee.

"This is a perfect example of a situation a lot of people find themselves in—with a construction or bridge loan of some kind that needs to be taken out in a way that positions the company to best manage through the downturn," Easter says. "A Capped ARM allows for up to seven years at a max [interest] rate but also a flexible prepay. It's a good situation for people who would have liked to have sold over the last 18 months but weren't able to do so."