Quantum 56

Essex secured a $62.0M non-recourse, fixed-rate construction loan for Phase I of Quantum 56, a Class A speculative industrial development in the infill core of Central Denver. Essex was hired on an exclusive basis to source construction financing on behalf of the developer, Hines (“Sponsor”). The loan was provided by one of Essex’s correspondent life insurance company relationships and had a 7-year term with 5 years of interest only. The fixed-rate construction loan was priced over the US Treasury rate index and the interest rate was locked 75 days prior to closing.

The Sponsor purchased a 60.3-acre site in Denver’s desirable North Central Submarket in Q3 2021 with plans for a two-phase project that will include 868,582 square foot Class A industrial space. Phase I of Quantum 56 will consist of three (3) buildings totaling 581,250 square feet – one cross-dock and two front-park/rear-load buildings. The entire project will feature six (6) buildings, along with an outdoor amenity center, and will cater to users targeting 20,000 to 350,000 SF. The Subject Property is located in the North Central Denver Submarket, arguably the metro’s strongest industrial submarket, which affords it superior access to the metro area with immediate proximity to the I-25/1-70/1-270/I-76 Interchange. The site will feature four (4) access points along 56th with a new traffic signal at 56th & Broadway.

“After running a process encompassing 100+ lenders, the Sponsor ultimately selected a fixed-rate option from a life co that yielded the best deal economics. Insurance companies continue to be a strong source of liquidity in this environment and have the capability to hold a loan of this size on their balance sheet. We’re excited to have had the opportunity to work on this impressive project for Hines.” – Blaire Butler, Vice President of Essex Financial Group.