Aries Capital has closed a $6.7 million first mortgage with very favorable terms for Cherry Creek Place III, a class-B office building in suburban Denver, Colorado.

Located at 3151 South Vaughn Way in Aurora, Colorado, the well-maintained six-story, 107,364 square foot building sits at the gateway of one of suburban Denver’s most desirable office parks and houses a technical college, financial and marketing firms and two U.S. government agencies.

The CMBS loan arranged by Aries Capital features a 73 percent loan-to-value ratio and a 10-year term. The Borrower, an affiliate of Arthur Hill & Co. LLC of Evanston, Illinois, used the loan proceeds to refinance maturing bank debt on the property. Although the building is 96 percent occupied, the suburban Denver office market suffers 21 percent vacancy rates, which presented the property with an underwriting challenge.

The Borrower found it difficult to find attractive terms in markets with high vacancy. However, with the Borrower’s demonstrated ability to keep the building well-maintained and leased in a challenging market, Aries was able to underwrite the deal at 10 percent vacancy and secure a non-recourse loan at 73 percent leverage.

“This is the second suburban office deal we completed with Aries Capital, and they worked hard to ensure the best terms for our loans. We have been very impressed with their understanding of the lending market and creativity in building capital structures,” said Tom Zabor, Vice President of Arthur Hill & Co. LLC.