HFF, Inc. : HFF arranges $230 million in financing for The Breakers Resort in
April 8, 2013
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.
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. 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.
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. 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.
The HFF team representing Bascom was led by directors Charles Halladay and
Mark Erland 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 5.0 percent and a combined debt yield of 6.25
percent," said Erland.
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
The Bascom Group, LLC (http://www.bascomgroup.com) is a private equity firm
specializing in value-added multifamily, commercial, and non-performing loans
and real estate-related investments and operating companies. Bascom sources
value-added and distressed properties, including many through foreclosure,
bankruptcy, or short sales and repositions them by adding extensive capital
improvements, improving revenue, and reducing expenses by realizing
operational efficiencies through implementation of institutional-quality
property management. Bascom has completed over $8.0 billion in multi-family
and commercial value-added transactions since 1996, including more than 220
multifamily properties and 60,000 units. Bascom currently ranks among the top
50 multifamily owners in the U.S. Bascom's subsidiaries and joint ventures
include the Southern California Industrial Fund, Rushmore Properties, Bascom
Portfolio Advisors, Shubin Nadal Associates, Spirit Investors, Bascom
Northwest Ventures, Bascom Arizona Ventures, and the Realm Group. Bascom's
subsidiaries also include Premier Business Centers, the largest privately held
executive suite company in the U.S.
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned
by HFF, Inc. (NYSE: HF). HFF operates out of 21 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, equity placement, advisory services, loan
sales, and commercial loan servicing. www.hfflp.com.
CHARLES W. HALLADAY
MARK J. ERLAND
KRISTEN M. MURPHY
HFF Associate Director, Marketing
This announcement is distributed by Thomson Reuters on behalf of Thomson
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(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: HFF, Inc. via Thomson Reuters ONE
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