After 26 Years, Koelbel & Company Sells Majority Share of The Breakers Resort in Landmark Transaction
Denver, CO — One of Denver’s oldest and most venerable real estate developers, Koelbel and Company, along with its partner The Bascom Group, recently announced the landmark sale of The Breakers Resort to Pensam Residential and its partners, BH Equities LLC and Wafra Capital Partners, brokered by ARA, A Newmark Company in a deal that will restructure ownership and allow Koelbel and Company to maintain its involvement in the future of the community as a minority owner. The Freddie Mac financing was handled by Berkadia. 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 Company has always prided itself on a long term vision of legacy communities that add to and enhance the fabric of where we live,” said Koelbel and Company 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 United States 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. As a result, the Denver multifamily market should remain one of the strongest performers in the United States.
“We are delighted that Koelbel and Company, 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,” said 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,” said Harry Bookey, Founder and CEO of BH Equities, LLC.
ARA, a Newmark Company closes on The Breakers Resort in Denver, the country’s second most valuable multi-housing trade to date in 2016 and the largest apartment deal in Colorado history.
”The sale of the Breakers is among the highest in the United States 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,” explained 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.
Image courtesy of ARA, a Newmark Company