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| The Breakers Resort, Denver, CO |
IRVINE, CA – HFF announced today that it has arranged $230
million in financing for The Breakers Resort, a six-village, 1,523-unit,
Class A multi-housing community in Denver, Colorado.
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| Charles W. Halladay |
The HFF team representing Bascom was led by directors Charles
Halladay and Mark Erland and included Josh Simon, Jordan Robbins and
Lee Redmond.
The HFF team worked exclusively on behalf of the borrower,
The Bascom Group, LLC, to secure a $165 million first mortgage, a $26.25
million mezzanine loan, and $38.75 million of preferred equity.
The $165 million first mortgage was a floating-rate loan and
included a three-year term with two, one-year extension options that was
provided through Bank of America and CIBC.
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| Mark Erland |
The mezzanine loan and preferred equity were provided by
Prudential Real Estate Investors’ $805 million U.S. Real Estate Debt Fund. Proceeds were used to refinance the
existing mortgage and mezzanine loans that HFF had secured for the ownership in
2011, buy-out the existing institutional equity partner, and provide capital
for future renovations.
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| Josh Simon |
Situated on 127 acres and developed by Koelbel and Company,
which will retain an ownership interest, The Breakers Resort is located at 9099
East Mississippi Avenue close to Cherry Creek, the Lowry Redevelopment and a
new community shopping center.
The “strongly-performing” property is 95 percent leased and
is comprised of six interconnected communities, each with their own clubhouse,
surrounding a 55-acre recreational lake.
The project has an
attractive low density of 14 units to the acre and has a master clubhouse
featuring a large fitness center with views of the Rockies, restaurant,
business center, community room and private theater.
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| Jordan Robbins |
The property has 50 one- and two-bedroom floor plans
averaging 1,019 square feet each. Also
included is an 18.23-acre apartment development parcel entitled for 628 units,
which is one of the best remaining infill apartment sites in Denver, according
to HFF.
“Bascom was able to access
mezzanine and preferred equity capital available in today’s market and
obtain financing on The Breakers Resort by adding an additional parcel of
developable land as collateral, resulting in a blended cost of capital of less
than 5.0 percent and a combined debt yield of 6.25 percent,” said Erland.
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| Lee Redmond |
According to Halladay, “The overall structure limited the
mezzanine financing, making it necessary to fund the remaining portion with
preferred equity. The Bank of America,
CIBC and Prudential lending teams did an outstanding job of closing the loan in
less than 30 days, including negotiating an inter-creditor.”
For a complete copy of the company’s news release, please
contact:
Kristen M. Murphy
Associate Director
HFF | 9 Greenway Plaza, Suite 700 | Houston, TX 77046
tel 713.852.3500 | cel 617.543.4873 | fax 713.527.8725 | www.hfflp.com
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