Bascom Group Receives $62M Refi for Denver Asset
The owner acquired the property the same year it was developed.
The Bascom Group has completed a $62.5 million refinancing of Viceroy Observatory Park, a 275-unit multifamily community in Denver. Prime Finance provided the $62.5 million loan, with JLL arranging the financing.
The refinance replaces a loan that matured in October with a new two-year initial term plus three additional one-year extension options. The note also reduces near-term maturity risk and provides additional time for Denver operating fundamentals and property values to recover, according to Bascom.
Bascom acquired the asset in 2018 for $92.5 million. Developed that same year by Mill Creek Residential, Viceroy Observatory Park offers studios and one- and two-bedroom units. Units feature nine- to 17-foot ceilings and include quartz countertops, custom tile backsplashes, stainless steel appliances, internal speaker systems and custom closets.
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Community amenities include a pool and spa, a two-story fitness center, an outdoor barbecue area and a firepit. There is also a coffee bar, a game room, a dog washing station and bike storage. Since the acquisition, Bascom has modernized the pool area, enhanced security and exterior lighting, added Nest thermostats and upgraded interior closets.
AMC will continue to provide property management services for the community, with SD-Cap overseeing future property renovations and upgrades.
JLL Capital Markets Senior Managing Director Jamie Kline and Associate Kyle White brokered the transaction.
A softening market
Multifamily fundamentals are still a bit soft in greater Denver, with recent rent declines of 3.6 percent year-over-year and the market’s occupancy rate at 93.5 percent as of June, below the 94.1 percent national figure, according to Yardi Matrix data. Developers added 4,752 units to Denver’s rental stock year-to-date through July, representing 1.3 percent of existing inventory. That figure lies above the 1.1 percent national average for the same period.
Investment activity is slow in Denver, with multifamily sales totaling $511 million year-to-date through July, Yardi Matrix also reported. This was a 65.5 percent contraction compared to the same period in 2025, when deals reached nearly $1.5 billion.
Even so, some investors are still active. Earlier this month, Avanti Residential acquired Park Cheesman Apartments, an 88-unit high-rise at 1177 Race Street in Denver. The company paid $31 million to the previous owner for the asset, which was originally developed in 1970.
In September, FPA Multifamily acquired a three-building, 237-unit multifamily portfolio in Denver. The properties, in the Observatory Park neighborhood of the city, had not changed hands in more than 50 years.
