Denver Portfolio Reels In $196M in Financing

Fiddler’s Green Portfolio. Image courtesy of Cushman & Wakefield

Acting on behalf of Schnitzer West LLC, Cushman & Wakefield recently arranged a $196 million refinancing financing package for the real estate company’s Fiddler’s Green Portfolio in Greenwood Village, Colo. The premier collection of three suburban Denver office properties encompasses nearly 740,000 square feet of Class A space. According to CommercialEdge, ACORE Capital was the originator and the loan matures in 2027.

The Fiddler’s Green Portfolio, sited roughly 15 miles south of Denver’s central business district, consists of Palazzo Verdi and Fiddler’s Green I and II, all of which are developments of The John Madden Co. In 2018, Schnitzer West became co-owner of the transit-oriented portfolio with the formation of a joint venture with the developer. In December 2021, Schnitzer West took on sole ownership when it acquired John Madden’s stake for $158.5 million.

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Baxter Fain, Rob Cronenberg and Sarah Dinning of Cushman & Wakefield’s Equity, Debt & Structured Finance Group arranged the financing for Schnitzer West through an unidentified debt fund that the firm describes as a premier lending partner.

“Office has become a polarizing product type in the debt market, but lenders continue to pick their spots and only provide debt on the right transactions for their profile,” Rob Cronenberg, debt broker with Cushman & Wakefield, told Commercial Property Executive. “Running a competitive marketing process has become more important than ever with lenders being so selective on transactions.”

A green office portfolio in suburban Denver

The portfolio isn’t a typical group of suburban office buildings. All three properties feature high-quality interior and exterior finishes, from polished black granite stone flooring to architectural woodwork, and are environmentally centric, incorporating a bevy of sustainable elements.

Developed in 2008, the 315,000-square-foot Palazzo Verdi at 6363 S. Fiddler’s Green Circle is the greenest of them all. The 15-story tower of glass and stone-colored concrete is LEED Platinum certified. In addition to its eco-friendliness, Palazzo Verdi is home to the Madden Museum of Art and additional ground-level offerings for a total of 20,000 square feet of retail space. Its 10 stories of office space sit atop a five-story parking facility.

Fiddler’s Green I and II, which opened in 1999 and 2001, each feature approximately 210,000 square feet. The two buildings form a semi-circle of sorts with Palazzo Verdi, with Fiddler’s Green I featuring the address of 6399 S. Fiddler’s Green Circle, and Fiddler’s Green I sitting at 6501 S. Fiddler’s Green Circle. Among the portfolio’s current tenants is Starz Entertainment, which leased approximately 100,000 square feet at Palazzo Verdi in the first quarter of 2022.

“Due to the profile of the deal, size of the loan, and the sponsors requested terms, we presented this deal to a select group of debt funds and national money center banks who could provide the best terms possible for a loan of this size. We received interest from several lenders but at varying leverage points,” Cronenberg said. “The quality of the real estate and the flight to quality for tenants in the office sector plus the strength and experience of the sponsor created a competitive market for this transaction.”