At a glance
- Alliance bought the vacant store from PCCP, which owns the retail property as part of a joint venture, for $11 million.
- The financing works out to about $230,000 of debt per unit, against a shell that Alliance bought for roughly $30,700 per unit.
- For fund selectors weighing construction-debt exposure, the per-unit debt and shell cost are comparable markers for other retail-to-residential conversions.
Helaba lent $82.2 million of construction financing to Alliance Residential for a 358-unit apartment conversion of a vacant Macy's at the Streets at SouthGlenn in Centennial, Colo., Commercial Observer reported.
Alliance bought the vacant store from PCCP, which owns the retail property as part of a joint venture, for $11 million. PCCP has been buying elsewhere, including a 2.7 million-square-foot Houston industrial campus with Adkisson, as Private Wealth Daily previously reported. The spread, term and loan-to-cost on the financing were not disclosed.
The financing works out to about $230,000 of debt per unit, against a shell that Alliance bought for roughly $30,700 per unit.
For fund selectors weighing construction-debt exposure, the per-unit debt and shell cost are comparable markers for other retail-to-residential conversions.
The project is slated for completion in September 2029, with amenities that include a swimming pool, coworking spaces, a fitness center and a rooftop deck.
Reported by the Real estate debt desk from Commercial Observer. Published . Corrections