DENVER—GlobeSt.com has learned that one of Denver's oldest and most venerable real estate developers, Koelbel and Co., along with its partner the Bascom Group, has sold The Breakers Resort to Pensam Residential and its partners, BH Equities LLC and Wafra Capital Partners. Brokered by ARA, a Newmark Co., the deal will restructure ownership and allow Koelbel and Co. to maintain its involvement in the future of the community as a minority owner.
The Freddie Mac financing was handled by Berkadia. According to a prepared statement, the Breakers property is one of the most dynamic apartment communities in Colorado and is the largest physical asset in metro Denver offering a nearly 190-acre site which spans 1,523 units among six villages, a privately owned lake and a 26,000-square-foot recreation center located within minutes of downtown Denver and Cherry Creek.
“Koelbel and Co. has always prided itself on a long term vision of legacy communities that add to and enhance the fabric of where we live,” says Koelbel and Co. president, Walter A. 'Buz' Koelbel, Jr. “Continuing our 26-year involvement with a community as unique as the Breakers certainly captures our philosophical approach.”
While The Breakers maintains its position as a unique and desirable asset, often referred to as one of Denver's premier multifamily communities, Pensam Residential and BH Equities have identified an opportunity for substantial value creation through modernizing and enhancing the amenities at the property. In order to accomplish these rehabilitation efforts, 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.
“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.” stated Terrance Hunt of ARA Newmark. “The Breakers is simply unmatched in its size, scope and standing as the only community with a private lake and virtually endless amenities.”
The Denver market is seeing job growth above both the state and national averages, and Denver is an economic hub for the central US and home to large corporations such as Lockheed Martin, United Airlines and Charles Schwab. Rapid population and employment growth will continue to fuel demand for highly-skilled professional jobs in the coming years, says the prepared release. As a result, the Denver multifamily market should remain one of the strongest performers in the US.
“We are delighted that Koelbel and Co., original co-developer of the Breakers beginning in 1989, will remain a minority partner with continued input on the strategic vision for the future of the community,” says Michael Stein, founding partner of Pensam Residential.
“This is a truly unique opportunity to build value through unique amenity and service offerings like those of no other apartment community,” says Harry Bookey, founder and CEO of BH Equities LLC.
”The sale of the Breakers is among the highest in the US for multi-housing in 2016, second only to a sale in Manhattan. Sixteen years ago, large, national investment groups would not have invested even $100 million in Denver,” explains Jeff Hawks of ARA Newmark. “Today, the city has truly captured the attention of these investors and is now competing with coastal markets. In fact, we received over 20 offers, and the key was finding a buyer who thoroughly understood the future opportunity and the operations of the property.”
DENVER—GlobeSt.com has learned that one of Denver's oldest and most venerable real estate developers, Koelbel and Co., along with its partner the Bascom Group, has sold The Breakers Resort to Pensam Residential and its partners, BH Equities LLC and Wafra Capital Partners. Brokered by ARA, a Newmark Co., the deal will restructure ownership and allow Koelbel and Co. to maintain its involvement in the future of the community as a minority owner.
The
“Koelbel and Co. has always prided itself on a long term vision of legacy communities that add to and enhance the fabric of where we live,” says Koelbel and Co. president, Walter A. 'Buz' Koelbel, Jr. “Continuing our 26-year involvement with a community as unique as the Breakers certainly captures our philosophical approach.”
While The Breakers maintains its position as a unique and desirable asset, often referred to as one of Denver's premier multifamily communities, Pensam Residential and BH Equities have identified an opportunity for substantial value creation through modernizing and enhancing the amenities at the property. In order to accomplish these rehabilitation efforts, 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.
“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.” stated Terrance Hunt of ARA Newmark. “The Breakers is simply unmatched in its size, scope and standing as the only community with a private lake and virtually endless amenities.”
The Denver market is seeing job growth above both the state and national averages, and Denver is an economic hub for the central US and home to large corporations such as
“We are delighted that Koelbel and Co., original co-developer of the Breakers beginning in 1989, will remain a minority partner with continued input on the strategic vision for the future of the community,” says Michael Stein, founding partner of Pensam Residential.
“This is a truly unique opportunity to build value through unique amenity and service offerings like those of no other apartment community,” says Harry Bookey, founder and CEO of BH Equities LLC.
”The sale of the Breakers is among the highest in the US for multi-housing in 2016, second only to a sale in Manhattan. Sixteen years ago, large, national investment groups would not have invested even $100 million in Denver,” explains Jeff Hawks of ARA Newmark. “Today, the city has truly captured the attention of these investors and is now competing with coastal markets. In fact, we received over 20 offers, and the key was finding a buyer who thoroughly understood the future opportunity and the operations of the property.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
