HFF arranged $230 million in financing on behalf of The Bascom Group LLC for The Breakers Resort, a six-village, 1,523-unit, class-A multi-housing community in Denver, Colo. The Bascom Group used the proceeds from the transaction to refinance an existing mortgage and mezzanine loan secured in 2011, buy out its institutional equity partner and provide capital for future renovations.
The deal included a $165 million first mortgage, a $26.25 million mezzanine loan and $38.75 million in preferred equity. Bank of America and CIBC provided funding for the first mortgage, which features a floating rate, a three-year term and two one-year extension options. Prudential Real Estate Investors’ U.S. Real Estate Debt Fund provided the mezzanine loan and preferred equity.
The Breakers Resort is currently 95 percent leased. Occupying 127 acres of land it consists of six interconnected communities surrounding a 55-acre recreational lake. The property features 50 one- and two-bedroom units that average 1,019 sq. ft. in size. It also comes with an 18.23-acre development parcel entitled for 628 apartment units.
HFF’s Charles Halladay, Mark Erland, Josh Simon, Jordan Robbins and Lee Redmond negotiated this transaction.
“Bascom was able to access mezzanine and preferred equity capital available in today’s market and obtain financing on The Breakers Resort by adding a parcel of developable land as collateral, resulting in a blended cost of capital of less than 5 percent and a combined debt yield of 6.25 percent,” said Erland in a statement.