Tupler, Simon arrange $31 million loan

Villas at Parker.
Advenir paid $39 million for the Villas at Parker.

Eric Tupler and Josh Simon of the Denver office of Holliday Fenoglio Fowler LP recently arranged a $31.2 million acquisition loan for Miami-based Advenir Inc. for its purchase of the 345-unit Villas at Parker.

Records indicate Advenir paid $39 million for the community at 1090 S. Parker Drive in Denver.

Records show that the seller, Jackson Square Properties, based in San Francisco, paid $34.6 million for the community in December 2014.

Tupler and Simon placed the seven-year, 2.69-percent, adjustable-rate loan with three years’ interest only with Freddie Mac’s CME (Capital Market Execution) program.

The securitized loan will be serviced by HFF through its Freddie Mac Program Plus Seller/Servicer program.

Loan proceeds were used to acquire the asset.

Eric Tupler

Eric Tupler

“Advenir will spend about $3 million to finish the renovations of the units,” Tupler said.

The property is a value-add deal. It was built in 1972.

The Freddie Mac is a good loan for Advenir and the property, he said.

“They went with an agency loan because it will provide up to 90 percent of the loan to value and it has a great interest rate under 3 percent,” Tupler said.

Life insurance companies typically do not provide such highly leveraged loans, he said.

“It also provides them with very strong prepayment flexibility,” Tupler said.

After a year, it can be sold with only a 1 percent prepayment penalty, he noted.

“It’s a really nice property with great cash flow,” Tupler said.

“It has a strong infill location,” he said, noting it is not far from downtown Denver or the Denver Tech Center.

It also is a short commute to Aurora, where it is near Buckley Air Force Base, Children’s Hospital Colorado, the University of Colorado hospital and the Anschutz Medical Campus.

The property is about 7 miles from Denver’s central business district.

All of these employment centers are within 6.5 miles to 9 miles from the community.

Advenir will rebrand the property as Advenir@Cherry Creek North.

It expects that its capital improvement program will allow it to achieve greater rental premiums.

Villas at Parker has studio, one- and two-bedroom units averaging 724 square feet. The 96 percent-leased community consists of 15 buildings on 17.4 acres. Amenities include a clubhouse and features a heated outdoor swimming pool, business center, fitness center, park and playground area, picnic areas and covered parking.

The community has immediate access to the High Line Canal Trail, Denver’s 850-mile network of hiking and biking trails.

The Cherry Creek Trail is within a mile of the property and provides direct access to the Cherry Creek Mall.

Additionally, the community is 3.5 miles from the Colorado light-rail station on the Southeast Rail Line.

Featured in CREJ’s Feb. 3-16, 2016, issue

John Rebchook has been taking the pulse of the Denver-area and Colorado commercial real estate world for almost 35 years. He joined the editorial staff of CREJ in 2011. Prior to that, he was the Real Estate Editor of the Rocky Mountain News from 1983 until it closed in 2009.