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PUEBLO, CO-The Denver regional office of NorthMarq Capital arranged $6 million in permanent for the Regency Square Shopping Center in Pueblo. The loan for the center, at 1715 to 1877 S. Pueblo, Blvd., encumbers 64,422 sf of the 122,000-sf development. The loan was made to the owner, Regency Square (Pueblo) LLC. The project was constructed in 1977 and renovated in 2001.

It is loan that comes from Wall Street in what is known as Commercial Mortgage Backed Securities, or CMBS form of financing, Steve Bye, executive vice president of and senior managing director of NorthMarq’s Denver office. He arranged the loan with Dave Link, assistant vice president and Kelly Niquette, investment analyst. Bye declined to name the lenders.

But not every Wall Street lender would be interested in making a loan for an un-anchored center in a city as small as Pueblo, Bye says. “Would everyone do it? No,” Bye tells GlobeSt.com. Yet, he was still able to get an excellent rate for the borrower, about 5.4% fixed for the next 10 years, he says. While not much by even Denver standards, $6 million is a good-sized loan in Pueblo, he says. He notes that he did a deal a number of years ago for a 70,000-sf medical office building in Pueblo, which is one of the nicer office building in the city. It may not even sell for $100 per sf, or $7million, he notes.

On the other hand, some of the biggest deals in Pueblo, just as in big cities, tend to be retail transactions, he notes. And with an 80% loan-to-value, and all of the competition in the CMBS market, he was able to arrange the financing. He notes that 10 or 12 years ago, before commercial loans were being securitized, it would have been impossible to land Wall Street money in a tiny city such as Pueblo.

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