The Bascom Group, an Irvine, CA-based private equity firm, has received $230 million in financing for The Breakers Resort in Denver. HFF's Charles Halladay, Mark Erland, Josh Simon, Jordan Robbins and Lee Redmond negotiated the transaction, which includes a $165 million first mortgage, a $26.25 million mezzanine loan and $38.75 million in 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.
"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% and a combined debt yield of 6.25%," said Mark Erland.
"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," added Halladay.
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% leased and is comprised of six interconnected communities, each with their own clubhouse, surrounding a 55-acre recreational lake.
For more news and information visit Blumberg Capital Partners.
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