Dealmaker: Koelbel and Co., Bascom Group Sell The Breakers Resort, $350M

Koelbel and Co., Denver, and The Bascom Group, Irvine, Calif., sold The Breakers Resort apartment property in Denver for $350 million.

Pensam Residential, Miami, BH Equities LLC, Des Moines, Iowa, and Wafra Capital Partners, New York, purchased the 190-acre site in a joint venture. The asset includes 1,523 rental units in six villages, a privately owned lake and a 26,000-square-foot recreation center.

Apartment Realty Advisors Newmark’s Denver office brokered the transaction in a deal that will restructure ownership and allow Koelbel and Co. to remain involved in the community as a minority owner. Berkadia, New York, secured the property’s $280 million first mortgage through Freddie Mac.

The Bascom Group acquired the Breakers Resort in June 2006 for $190 million in a joint venture with Koelbel and Co. and GE Capital. Bascom and Koelbel later recapitalized the property and acquired GE Capital’s interest in March 2013 with debt financing from Bank of America, CIBC and Prudential. 

“The Breakers occupies a prime infill location in a millennial-driven submarket and buyer activity was greatly increased due to the property being a prime candidate for a value-add strategy,” said ARA Newmark Principal Terrance Hunt. 

The new owners said they plan “substantial” value creation through modernizing the property’s amenities. Their capital improvement program includes re-purposing several individual community clubhouses and retrofitting the Catamaran Club, Riviera Cafe and the Marina.

Wafra Capital Partners Chief Investment Officer Michael Gontar said the acquisition allowed the investment firm to deploy capital into a growing market with capital appreciation over time.