IRVINE, Calif.--(BUSINESS WIRE)--HFF announced today that it has arranged $167 million in first trust deed and mezzanine financing for The Breakers Resort, a six-village, 1,523-unit, Class A multi-housing community in Denver, Colorado.
HFF worked exclusively on behalf of the borrower, a joint venture between The Bascom Group and Koelbel and Company. The financing involved securing a $132 million floating-rate first trust deed through ING Real Estate Finance, and a $35 million mezzanine loan from Blackstone. The non-recourse loan was interest-only and featured a combined interest rate of 4.6 percent. Proceeds were used to pay off existing maturing debt and fund capital improvements.
Situated on 127 acres, 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 96 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. The property has 50 one- and two-bedroom floorplans averaging 1,019 square feet each. Also included, is an 18.23-acre apartment development parcel, which is one of the best remaining infill apartment sites in Denver, according to HFF.
The HFF team representing the borrowers was led by director Mark Erland and associate director Charles Halladay in Orange County, and senior managing director Mona Carlton in Dallas.
”The loan structure was chosen because of the competitive interest rate, the low combined loan constant, prepayment flexibility, funds available to finance capital improvements, and certainty of execution,” said Erland. “ING Real Estate Finance and Blackstone provided a very competitive combined financing structure and were highly responsive to the loan request. We had less than one month to close the refinance, and the good working relationship between the two lenders gave HFF confidence in making the recommendation to proceed. The borrower closed in 29 days from application, which was a testament to the skill of the combined closing team.”
Bascom (http://www.bascomgroup.com) is a private firm headquartered in Irvine, California, specializing in value-added and distressed multifamily real estate investments. Bascom sources value-added apartment properties and repositions them by adding extensive capital improvements and reducing expenses by realizing operational efficiencies through the implementation of institutional-quality property management. Since 1996, Bascom has completed transactions totaling over $6.3 billion comprising 55,0000 units and over 200 properties in California, Colorado, Washington, Hawaii, Nevada, Arizona, Utah, Georgia, and Texas.
Koelbel and Company is one of the oldest continuously operating real estate development firms in Colorado. For nearly 60 years, Koelbel has consistently produced quality developments through extensive planning and research, long-term visioning and a steadfast commitment to responsible community development. For more information, visit www.koelbelco.com.
Holliday Fenoglio Fowler, LP (“HFF”) and HFF Securities LP (“HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 19 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, advisory services, structured finance, private equity, loan sales, and commercial loan servicing. www.hfflp.com.