DENVER--(BUSINESS WIRE)--Holliday Fenoglio Fowler, L.P. (HFF) announces that it has arranged $165 million in permanent financing for Dairy Block, Denver’s newest micro-district that celebrates the maker – a vibrant community of inspired retailers, chefs, creators and cocktail crafters – and integrates with some of the most sought after office tenants together with a highly curated boutique hotel, located in the heart of lower Downtown Denver, Colorado.
The HFF team worked on behalf of a joint venture partnership between McWHINNEY, Grand American and Sage Hospitality to secure the long-term debt with MetLife Investment Management. Loan proceeds were used to refinance the construction loan on the property.
Dairy Block consists of three components: Dairy Block office space totaling six stories and 218,660 square feet of newly built space plus a 380-space subterranean parking garage; a historic Firehouse Block containing 92,803 square feet of office and retail along Blake Street; and the 172-key Maven Hotel. The Maven Hotel is an eight-story onsite boutique hotel operated by Sage Hospitality that features the 175-seat restaurant Kachina Cantina along with the Poka Lola Social Club. This award-winning project encompasses an entire city block between Wazee, Blake, 18th and 19th Streets in LoDo and features Denver’s first activated pedestrian alley, which is a unique aspect of the development that provides tenants of the office space and hotel guests an amenity base and experience unlike anything else in Downtown Denver. Dairy Block is conveniently located two blocks from Denver Union Station and one block from Coors Field at the epicenter of Denver’s transportation corridor.
The HFF debt placement team representing the borrower included senior managing director Eric Tupler and director Brock Yaffe.
“HFF really delivered for our partnership on this transaction. We are quite pleased with this execution for the refinance of Dairy Block, as we were able to procure excellent financial terms and structure coupled with a 15-year loan term, which perfectly aligns with our long-term hold strategy on this dynamic, core, A+ asset,” said Joshua Kane, senior vice president of McWHINNEY.
McWHINNEY is a Colorado-based real estate and investment development firm with offices in Loveland and Denver, comprising a team of talented professionals who are passionate about creating great places and providing fabled experiences. Since 1991, McWHINNEY has planned and developed more than 6,000 acres of innovative and sustainable master-planned communities and more than 10 million square feet of vertical commercial and mixed-use properties throughout the Rocky Mountain region and the West Coast. Over the years, McWHINNEY has been recognized for significant real estate development contributions, including being named Colorado’s “Developer of the Year” by the National Association of Industrial and Office Properties (NAIOP), winner of the Urban Land Institute’s (ULI) Global Awards for Excellence, The Denver Business Journal (DBJ) Real Estate Champions – Catalyst Award for Denver Union Station and the Development Deal of the Year for Denver Union Station by NAIOP. McWHINNEY has been ranked 11 and 13 on the list of the Best Small and Medium-Sized Companies to work for in America. For additional information, visit https://mcwhinney.com/.
About Grand American
Grand American, Inc. is a commercial real estate company specializing in urban development within historic districts. Albert Ehringer founded the company more than 40 years ago and has built a team of professionals to implement his high standards in this industry. Grand American has built new and renovated well over a hundred buildings in sensitive downtown areas including Santa Monica, Pasadena, and Denver. It has been their policy to manage and lease their investment portfolio, bringing pride of ownership and success in the marketplace to those endeavors.
About Sage Hospitality
Denver-based Sage Hospitality was founded in 1984 and since continues to lead the hospitality industry in hotel and restaurant management, brand development as well as real estate investment. Sage is known for outstanding relationships with hotel brands and creating places that people want to go to, not through, including 10 unique restaurant concepts by Sage Restaurant Group and independent luxury properties by Sage Hotels. To learn more about Sage, visit www.sagehospitality.com.
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.