Dealmaker: NXT Capital Closes $46M Loan to Colorado Office Park

NXT Capital, Chicago, closed a $45.6 million loan to finance acquisition of Cherry Creek Plaza I & II, a two-building office park in Glendale, Colo.

Cherry Creek Plaza

Privately held investment firm TerraCap Management LLC, Estero, Fla., acquired the asset in March for $54 million. Local news site BusinessDen reported Corum Real Estate Group, Denver, sold the property.

Among the tallest buildings in Glendale, Cherry Creek Plaza is five miles southeast of downtown Denver.

CBRE Vice President C.J. Kelly and Senior Vice President Jeff Halsey placed the loan with NXT Capital.

Cherry Creek Plaza includes two 13-story office buildings totaling 335,000 square feet office with structured parking on the south side of Cherry Creek, one of Denver’s strongest-performing submarkets. It is adjacent to Glendale 180, a proposed $175 million mixed-use development and to the Cherry Creek Trail cycling path.

TerraCap Founder and Managing Partner Steve Hagenbuckle said the acquisition increased TerraCap’s investments in metro Denver to nearly 1.1 million square feet in less than 12 months. “We continue to be strong believers in Denver and the Glendale/Cherry Creek submarket, as in-migration, employment growth and corporate relocations from the west will lead to strong leasing and a greater variety of tenants,” he said.

Cherry Creek Plaza occupancy will drop to 73 percent shortly when a full-floor tenant exits, allowing TerraCap to offer office suites ranging from 1,000 square feet to 19,000-plus square feet. Lincoln Property Co., Dallas, will handle the leasing assignment and Corum Real Estate Group will remain property manager.