Koelbel and Co., in partnership with The Bascom Group, has announced the sale of its majority share in The Breakers Resort in Denver to Pensam Residential and its partners, BH Equities and Wafra Capital Partners. The sale price was $350 million.
At 190 acres, The Breakers Resort is the largest physical asset in the Denver metro area. The community contains 1,523 units divided between six “villages,” a 26,000-square-foot recreation center, and a private lake. Koelbel was an original co-developer of The Breakers in 1989 and will remain involved in the community as a minority owner.
Pensam Residential and BH Equities are planning to add value to the community by modernizing its amenities, repurposing community clubhouses, and rehabilitating the Catamaran Club, the Riviera Café, and the Marina.
"The Breakers occupies a prime infill location in a millennial-driven submarket,” said Terrance Hunt of ARA Newmark, the brokerage firm for the sale, in a press release. “Buyer activity was greatly increased due to the property being a prime candidate for a value-add strategy.”
The Denver metro’s current rate of job growth is above state and national averages, which in turn fuels its strong multifamily market.
“Sixteen years ago, large, national investment groups wouldn't have invested even $100 million in Denver,” said 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.”