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Apr. 10, 2013

HFF Arranges $233 Million in Financing for 1,523-unit Breakers Resort

By Gabriel Circiog, Associate Editor

Holliday Fenoglio Fowler recently announced that it has arranged $230 million in financing for The Breakers Resort in Denver. Working exclusively on behalf of The Bascom Group LLC, the borrower, the HFF team secured a $165 million first mortgage—a floating-rate loan that includes a three-year term with two one-year extension options provided through Bank of America and CIBC.

The HFF team also secured a $26.25 million mezzanine loan and $38.75 million of preferred equity provided by Prudential Real Estate Investors’ $805 million U.S. Real Estate Debt Fund. The proceeds were utilized to provide capital for future renovations to refinance existing mortgage and mezzanine loans that were secured for the ownership by HFF in 2011 and to buy out the existing institutional equity partner.

Located on 127 acres at 9099 East Mississippi Ave. close to Cherry Creek—a new community shopping center—and the Lowry Redevelopment, The Breakers Resort is a six-village, Class A multi-housing community that features 1,523 units. Developed by Koelbel and Company, which will retain an ownership interest, the property is 95 percent leased and features six interconnected communities surrounding a 55-acre recreational lake. Each community has its own clubhouse and a low density of 14 units per acre.

The project also includes a master clubhouse with a fitness center, business center, restaurant, community room and private theater. The property has 50 one- and two-bedroom floor plans averaging 1,019 square feet each. As part of the property, an 18.23-acre development parcel, which could include up to 628 units in the future, is considered by HFF one of the best remaining infill apartment sites in Denver.

HFF directors Charles Halladay and Mark Erland led the HFF team that represented Bascom and included Josh Simon, Jordan Robbins and Lee Redmond. “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 percent and a combined debt yield of 6.25 percent,” said Erland.

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Photo Courtesy of: www.thebreakersresort.com

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