CBRE Arranges $58 Million in Refinancing for Historic Sugar Block in Downtown Denver
21 May 2018
CBRE recently arranged the $58 million refinance of the Sugar Block, a 189,145-square-foot mixed-use development located along 16th Street between Blake and Wazee in lower downtown Denver. Brady O’Donnell, Jeff Halsey and Jill Haug, with CBRE Capital Market’s Debt and Structured Finance group, represented the property owner and worked with Urban Villages, Inc., the developer and property manager, on the transaction. The lender is Principal Real Estate Investors (on behalf of an advised separate account) based in Des Moines, Iowa and the loan closed April 30, 2018.
Constructed in 1906 and listed on the National Register of Historic Places, the Historic Sugar building at 1530 16th Street is the namesake of the block. It was originally built for the Great Western Sugar Company and designed by the same architectural firm as Union Station, Grove and Walsh. In 2008, Urban Villages developed the Sugar Cube next door at 1555 Blake Street, followed 10 years later by the addition of Sugar Square, which was completed earlier this year.
“Sugar Block is a seamless blend of turn-of-the-20th-century architecture, modern design and state-of-the-art construction culminating in LoDo’s finest mixed-use project. Urban Villages has done a remarkable job of not only preserving but progressing this historic and iconic property,” said Brady O’Donnell, Vice Chairman, CBRE.
In total Sugar Block offers nearly 120,000 square feet of Class AA office space, 18,000 square feet of high-end ground-floor retail space and 37 luxury apartment units. The development also has a 132-space subterranean parking garage. The residential units feature 24/7 concierge service and private elevator access among other amenities.
Urban Villages, a Colorado-based development and property management company, has made historic redaptive reuse projects a key focus area of its business. Recently it announced a partnership with Larimer Associates to work on the next phase of strategic development at Larimer Square.
“We have enjoyed working with CBRE throughout the process and appreciate their guidance in selecting a lending partner who shares our vision for the future of the Sugar Block,” said Stina Kayser, Principal and General Counsel of Urban Villages.
Located along the 16th Street Mall, tenants, residents and visitors of the Sugar Block have immediate access to the complimentary mall ride. The property is also one block from Union Station, providing access to DIA and the wider metro area through bus and light rail service.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.