February 20, 2020 – JLL Capital Markets announced today that it has arranged $81.8 million in financing for the acquisition of 3800 Steele Street, an 11-building portfolio totaling 452,014 square feet of industrial, flex and office space in a Qualified Opportunity Zone in Denver, Colorado.
JLL worked on behalf of the borrower, a joint venture partnership between ScanlanKemperBard (SKB) and Harbert Management Corporation, to place the three-year, floating-rate bridge loan with two one-year extensions with Granite Point Mortgage Trust Inc., (a Pine River Capital Management company). The borrower plans on renovating the portfolio and taking advantage of the proposed 39th Ave Greenway project by carving out an additional vehicle access route through the center of the site.
3800 Steele Street represented the largest available infill industrial project in Denver and is in an Opportunity Zone in Denver’s Lower North Central Industrial submarket. The portfolio is less than four miles east of Downtown Denver and at the confluence of two of Denver’s main thoroughfares, Interstate 70 and York Street. This location provides direct accessibility to the entire Denver MSA. Originally completed between 1940 and 1943, the properties were last renovated in 2000 and feature 18-foot clear heights, dock-high loading, exposed brick and wood ceilings and beams.
The JLL Capital Markets team representing the borrower was led by Senior Managing Director Tom Wilson, Senior Director Leon McBroom and Analyst Christopher DuCharm.
“SKB and Harbert have a great vision for this urban flex/manufacturing space,” McBroom said. “The mixed-use nature of creative office and light manufacturing weaves in well with the fabric of the surrounding neighborhood, and we are thrilled to have partnered Granite Point with the borrowers through the execution of this exciting business plan.”