CoBiz Bank funds $25.6 million loan for Peña Station
Colorado Business Bank recently funded a $25.6 million senior secured construction facility for the development of a transit-oriented multifamily development at the Peña Station light-rail station near Denver International Airport.
J. Rhett Nunnally arranged the loan for developer MGL Partners for the $43.3 million development of the 218-unit community, which will be part of the 383-acre Peña Station Next project. The overall development plan for the area includes up to 1.78 million square feet of office space, 1,085 hotel rooms, 3,825 residential units, 668,000 sf of retail and 58 acres of open space.
The development of Peña Station and the subject financing exhibit the complexity often required to deliver affordable housing in today’s market and the creativity and collaboration necessary to effectively capitalize the investment, noted Nunnally.
The bank group was augmented by VectraBank Colorado, which was a significant participant in the loan. Additionally, multiple quasi-governmental entities provided subordinate debt tranches.
Further, the developer elected to obtain a permanent loan forward commitment, which was provided by The Federal Home Loan Mortgage Corp. via Prudential Affordable Mortgage Company LLC. The developer’s joint-venture partner was a division of Prudential Financial Inc.
It was a 15-month process to finalize entitlements, obtain equity commitments, source and structure the subordinated debt tranches, and then finally to complete the underwriting and documentation of the senior secured debt facility.
The Peña Station community will comprise 75 percent market rate and 25 percent affordable (80 percent area median income) units. The apartments will be situated in six three- story buildings of wood-frame construction with surface and attached tuck-under and breezeway- access garages, a fitness center, swimming pool, spa, two-story clubhouse with business center, game area, co-work offices, bike/ski maintenance, dog wash, second-level terrace overlooking the pool and a conference room.
Apartments will include balconies or patios, washers and dryers, microwaves, ice maker refrigerators, quartz countertops and stainless steel finish appliances. Some units will include island kitchens, built-in shelves or double lavatories.