Dealmaker: Capital One Provides $27M for Denver-Area Affordable Housing

Capital One, McLean, Va., provided a $27.4 million Fannie Mae fixed-rate loan for The View at North Peak, a 288-unit affordable community in Denver suburb Northglenn, Colo.

A joint venture of two private equity real estate investment companies including Los Angeles-based Trion Properties acquired the property for $38 million.

Andrew Kwok, Vice President in Capital One Multifamily Finance’s Newport Beach, Calif., office, originated the transaction. The seven-year fixed-rate loan included four years of interest-only payments followed by amortization on a 30-year schedule.

Trion Properties Managing Director of Acquisitions Farhan Mahmood said the property qualified for financing under Fannie Mae’s Multifamily Affordable Housing Properties program because more than 20 percent of its units are restricted to renters earning 50 percent or less of the area median income.

Mahmood noted the interest rate closed “in the mid-2 percent range.”

Max Sharkansky, Managing Partner at Trion Properties, said the Denver market has powerful potential for return on investment. “Denver benefits from strong employment, an affordable cost of living relative to the very high quality of life the area offers, a pool of sophisticated top talent and the expansion of several prominent companies,” he said. “These include Amazon, which recently announced Denver as one of six U.S. tech hubs it’s growing in, and Palantir, which is moving its headquarters to Denver and expects to continue to expand in the market, among others.”

The View at North Peak dates to 1971. It is adjacent to Northwest Open Space, a 50-acre athletic complex and nature area operated by the City of Northglenn.