By Molly Armbrister – Denver Business Journal
The Breakers Resort, a 1,523-unit apartment complex at 9099 E. Mississippi Ave. in Denver, has sold for a record price of close to $350 million, according to public record.
Florida-based Pensam Residential, BH Equities LLC and Wafra Capital Partners acquired a majority stake in the property, which was previously owned by The Bascom Group and Denver’s Koelbel & Co.
The purchase price makes the sale the largest apartment trade in Colorado’s history.
The apartments are spread among six “villages” that sit on 190 acres of land in eastern Denver near the border of Aurora. The purchase also includes a 26,000-square-foot recreation center. An 18-acre parcel of land that could be developed in the future was not included in the sale and is still owned by Bascom and Koelbel.
Koelbel, which was the original developer of the project, retained a stake when Bascom bought into Breakers in 2006. Koelbel will continue to retain a minority stake in the property, according to a release Wednesday.
“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 & 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.”
“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.
The sale was handled by ARA, A Newmark Company.
“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.” said 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.”
In addition to being the largest transaction in Colorado’s history, the trade is the second-largest apartment sale in the country this year, according to ARA.