Structured and arranged preferred equity to capitalize the development of a 316,000-square-foot industrial property in Broomfield, Colorado.
Challenges
Sponsor was seeking an equity partner for a speculative development in an emerging industrial hub. The existing environmental issues that required remediation prohibited many equity providers from considering the transaction. Furthermore, a complicated two-phase loan closing structure made a traditional JV equity investment less viable.
Solutions
Identified an east coast fund manager familiar with the local market and seeking industrial development opportunities. Got investor comfortable that though pursuing small tenants made it difficult to prelease the property the prior precedence of leasing properties during development was the correct strategy for this opportunity. Worked with investor to consolidate a two-tranche funding into a single deployment to enable it to effectively invest into the deal.
