Pensam Residential Acquires Denver Landmark Community for $350M
The price sets a new record for Colorado and is the second highest paid for a single multifamily asset in the U.S. this year.
Denver–Pensam Residential, a national multi-housing owner and operator, announced the purchase of The Breakers Resort, a Denver landmark. The 1,523-unit apartment community was acquired for $350 million, making that transaction the country’s second most valuable multi-housing purchase in 2016, and the largest apartment deal in Colorado history. “The senior loan that Pensam acquired was one of the largest single asset loans from Freddie Mac. We were able to close the loan in under 45 days,” said Michael Stein, founding partner of Pensam Residential.
Sitting on 190 acres of land amongst six villages, The Breakers Resort is the largest physical asset in metro Denver, accompanied by a 26,000 square foot recreation center and a privately owned lake, located within minutes of downtown.
“This is a key strategic investment for Pensam Residential as the Denver market is seeing job growth above both the state and national averages,” said Stein. “Rapid population and employment growth will continue to fuel demand for highly-skilled professional jobs in the coming years. The Denver multifamily market should remain one of the strongest performers in the United States.”
Often referred to as one of Denver’s premier multifamily communities, Pensam Residential sees The Breakers Resort as an opportunity for substantial value and plans to modernize and upgrade the amenities within the property.
Koelbel and Company, the original co-developer of The Breakers since 1989, will continue to have input on the future of the property. “It was a very complex transaction from a structuring standpoint,” said Stein. “We bought the majority interest and created a tax efficient structure that enabled the original owner to remain a minority partner.”
While The Breakers maintains its position as a unique and desirable asset, the companies will implement a sizable capital improvement program to include re-purposing of several individual community clubhouses as well as a complete retrofit of the Catamaran Club, Riviera Cafe and the Marina.