Denver

Michael Cantwell, managing director of Johnson Capital’s Denver office, has arranged $23.6 million in financing for the owner of a multi-state portfolio of ground leases underneath four office buildings. The ground leases are owned by affiliates of Aardex LLC, which developed the properties and subsequently sold leasehold interests to third-party investors. Each property is subject to a 99-year ground lease. Three of the office buildings are leased to the General Services Administration. One of those is located in New Mexico, and the other two are in California. The fourth office building is located in Lakewood, CO, and is fully occupied by two credit tenants, Gambro and CaridianBCT, which are both medical equipment manufacturing companies. Goldman Sachs was the lender on this conduit deal, which Johnson Capital reports is one of the first conduit deals completed since 2008. The 10-year note has a 30- year amortization schedule and a loan to value ratio of 75%. The Colorado property is called Signature Center and it is located in the Denver West Office Park. It contains 183,500 square feet in five stories plus structured parking and was built in 2008 at the Denver West Parkway and I-70 intersection.  Upon completion, it was only the second Double LEED Platinum building in the world. The New Mexico property is located at 555 Broadway in Albuquerque and contains 33,328 square feet. It was completed in 2003 and is located in the central business district. The California properties are located in downtown Fresno and Perris. The Fresno property is leased to the Federal Government and it houses courtrooms and judicial offices in 126,347 square feet. It is located at 1950 G St. The Perris property is located at 23123 Cajalco and it contains 183,194 square feet. It houses the National Archives and Records Administration. Commenting on the debt placement, Cantwell says that “What appeared to be a quick and easy transaction on the surface turned into a very detailed and complex financing. Goldman Sachs did a thorough job and as the complexity grew, they continued to find a way to make the deal.”

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