DENVER-GlobeSt.com has exclusively learned that Mesa West Capital has served as the lender on behalf of the Bascon Group LLC, an Orange County, CA-based real estate company that recently purchased Village at Loretto Heights in Denver. CBRE's capital markets group secured the financing.
Brian Eisendrath with CBRE's debt and equity finance group arranged a floating rate, full-term interest only loan of $27.2 million, which was priced at an interest rate of 425 bps over the 30-Day LIBOR rate for three-years. Eisendrath tells GlobeSt.com that “the Denver market has seen strong investor demand for multifamily assets due to improved fundamentals in the region.”
Jeff Fuller, SVP of acquisitions at Bascom, led the acquisition team. A portion of the loan proceeds will be used by Bascom to complete a multi-million dollar renovation of the units initiated by the seller. The loan represented 75% of total costs.
Bascom purchased the 312-unit multifamily building from a private investor for $32.6 million. GlobeSt.com learns that CBRE was able to arrange debt at 75% of the total cost, which included a renovation budget.
“This loan helped Bascom accomplish its goal of obtaining sufficient leverage to maximize returns to investors,” Eisendrath says.
Built in 1990, the property consists of 312 one- and two-bedroom apartment units and is currently 97.8% occupied. Amenities include a clubhouse, internet cafe, two pools, wading pool, spa, sand volleyball court, tennis court, 24-hour fitness center, and playground. Bascom plans to complete the renovation of the all units, which includes installing washer/dryers. Exterior and community upgrades will include lighting enhancements, landscaping upgrades, two new fitness centers, pool deck upgrades, a dog park, a basketball court and other amenity upgrades.
According to a recent market report from CBRE, the population of the Denver area stands at 2.95 million, 17th largest of the multihousing markets the company tracks. The average per capita income, according to data from Moody'sEconomy.com is estimated to be $50,254—approximately 18% above the national average. And total employment stands at 1.41 million workers, says the report.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
