Photo: The Bascom Group
Bascom Group has refinanced a 275-apartment Denver property with a $62.5 million loan, replacing debt that matured in October. The new financing gives the owner an initial two-year term and options to extend as it continues work on Viceroy Observatory Park.
The company announced Friday that Prime Finance provided the loan. JLL arranged the financing for Bascom, which bought the community in May 2018 for $92.5 million.
Refinancing resets the loan timeline
The new loan has three additional one-year extension options after its initial two-year term. Bascom said it ran a competitive process to secure the refinancing.
The transaction addresses the property’s near-term debt maturity rather than transferring ownership. Bascom says the longer financing horizon gives it more time to operate the community as Denver’s apartment market works through recent supply growth.
Jim Singleton, Bascom’s senior vice president and principal of acquisitions, said the financing showed continued lender interest in well-positioned properties despite headwinds in capital markets.
Property sits near the University of Denver
Viceroy Observatory Park was developed by Mill Creek Residential in 2018 and sits one block from the University of Denver. It includes studio, one-bedroom and two-bedroom apartments.
The community has a pool and spa, a two-story fitness center, outdoor barbecue areas, a game room, bicycle storage and a dog-washing station.
Since buying the property, Bascom says it has modernized the pool area, improved security and exterior lighting, added Nest thermostats and upgraded apartment closets.
Management and renovation teams stay in place
AMC will continue managing the property, while SD-Cap oversees renovations and upgrades. Jamie Kline and Kyle White of JLL arranged the loan, with Shawn Cully and Roy Bezkostny representing Prime Finance.
JBizNews Desk | Denver
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