HFF, Inc. : HFF arranges $230 million in financing for The Breakers Resort in Denver 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 intercreditor." 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. CONTACTS: CHARLES W. HALLADAY HFF Director (949) 253-8800 firstname.lastname@example.org MARK J. ERLAND HFF Director (949) 253-8800 email@example.com KRISTEN M. MURPHY HFF Associate Director, Marketing (713) 852-3500 firstname.lastname@example.org ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (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 the information contained therein. Source: HFF, Inc. via Thomson Reuters ONE HUG#1691392
HFF, Inc. : HFF arranges $230 million in financing for The Breakers Resort in Denver
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