CREJ

Page 8

April 5-18, 2017

www.crej.com

OLORADO

EAL

STATE

OURNAL

Multifamily

by Jennifer Hayes

Michael Stein, founding

partner of Pensam Residen-

tial, made waves at the Col-

orado Real Estate Journal’s

spring 2017 Multifamily

Development & Investment

Conference March 16 with the

announcement of The Break-

ers’ new identity and approx-

imately $30 million in renova-

tions to the property.

The apartment community,

located off East Mississippi

Avenue in Denver, on a near-

ly 190-acre site, spans 1,523

units among six villages, and

includes a privately owned

lake and a 26,000-square-foot

recreation center. It has been

rebranded as Tava Waters.

Under the new ownership

of Pensam Residential – with

continued involvement of

Koelbel and Co., which will

stay on as a minority owner –

The Breakers is undergoing a

large three-phased value-add

strategy to enhance the prop-

erty. The first phase is the

rebranding to Tava Waters,

complete with a new logo and

website.

“The rebranding of The

Breakers to Tava Waters is the

first step in taking the origi-

nal vision of the community

and bringing it into the future

– modernizing while staying

true to our roots,” said Stein.

“Our focus is on appealing to

the next generation of resi-

dents – those looking for a

community that offers a con-

venient, holistic lifestyle root-

ed in Denver adventure.”

“Named by the Ute Indians,

‘Tava’ was the original name

of Pikes Peak and means sun.

We saw great value in con-

necting the community with

this important piece of Den-

ver’s history and respect of

the landscape in one short,

visually impactful word,”

Mackenzie Craven, director

of creative services at G5, an

Oregon-based agency leading

the brand refresh for Pensam

Residential, said in a release.

“The original resort will

always be ingrained in the

community, so it was impor-

tant the new brand pays

homage to and plays up the

uniqueness of lakeside living,

which is where ‘Waters’ came

in.”

Renovation work to the

community includes interior

upgrades to bring the out-

doors in as well as amenity

upgrades that include activat-

ing the lake area with addi-

tional waterfront activities

and reconfiguring existing

amenities to the active, out-

door lifestyle.

“This is a threshold moment

in the evolution of The Break-

ers, and I think the name Tava

Waters both represents the

rich history of the community

and serves as a catalyst for

its future,” said Koelbel and

Co. President Walter A. “Buz”

Koelbel Jr.

Interior work at Tava Waters

already has commenced, with

plans for 25 to 35 apartments to

be upgraded each month over

the next 18 months. Upgrades

include new finishes such as

stainless steel appliances, quartz

countertops and faux hardwood

floors; Nest thermostats; Kevo

Bluetooth door locks; Google

Home devices; and water-sav-

ing faucets, toilets and shower

heads.

Pensam Residential also will

install eight electric-car charging

stations as well as begin exterior

renovations, such as LED light-

ing, exterior building repairs and

repainting the entire community.

Large-scale amenity upgrades

will start with interior renova-

tions to the Boundary Bay Club-

house as well as the transfor-

mation of the Friday’s Harbour

Clubhouse into a new opera-

tions center, according to the

firm. The final phase will cen-

ter on the overhaul of the main

CatamaranClubhouse, inclusive

of a state-of-the-art fitness cen-

ter, expanded, modern pool area

and new restaurant space.

“The Breakers was a vision-

ary concept when it was

founded nearly 30 years ago,”

said Stein. “Today, with the

unveiling of the new Tava

Waters name, logo and web-

site, we’re launching a vision

for the next 30 years.”

▲

Rebranding, renovation underway at The Breakers

ing the seller a significant pre-

payment penalty, which account-

ed for the difference from the

list price and the closing price,”

added Lawson.

Additionally, a 16-unit prop-

erty at 1960 Eaton St., located off

Sheridan Boulevard and West

Colfax Avenue in Sloan’s Lake,

sold for $2.73 million, or $170,313

per unit.

Fetter represented the buyer in

the transaction.

“As renters struggle to keep

up with prices in Denver, we're

seeing two things,” said Fetter.

“First is more demand for two-

bed units and second is a shift

out of central Denver. This prop-

erty capitalizes on both of those

trends. The units are large and

the area is quickly transitioning

with the rest of Sloan’s Lake. The

buyer got a great loan and a new

roof from the seller, so he is well

positioned on this purchase.”

Also,

Josh Newell

, a senior

adviser with the firm, represent-

ed both the local seller and buyer

in the disposition of 8220 W. 16th

Place in Lakewood.

The 18-unit property sold for

$2.7 million, or $150,000 per unit

and $164.21 per sf.

■

Marcus & Millichap

recently

released its 2017 U.S. Multifam-

ily Investment Forecast in which

it noted that job gains and lim-

ited single-family home options

have driven households to apart-

ments in the Denver metro area.

The report noted not only that

the tight single-family housing

market has not only extended

tenures in rentals but also that

home prices have risen faster

than rent and the median house-

hold income over the past sev-

eral years, resulting in a strong

demand for apartments.

This demand, according the

Marcus & Millichap, also has

spurredbuilders to addmore than

30,000 units toDenver’s inventory

over the past four years.

The firm anticipates deliveries

to remain elevated this year and

supply additions will outpace

demand, yet the vacancy rate

could remain below early 2000

levels.

Marcus & Millichap also noted

that “low vacancy and solid rent

gains for Class B and C prop-

erties have encouraged private,

local buyers to be most active in

the market. Sales of these assets

are dominating deal flow, plac-

ing upward pressure on prices,

with opportunities in the core

changing hands at cap rates in

the low- to mid-5 percent area.”

Buyers seeking upside poten-

tial will look for opportunities in

suburbanareas,whichhavemore

affordable rent, the report added.

Additionally, sellers are reinvest-

ing in higher-yield opportunities

elsewhere in the metro area or in

Colorado Springs.

▲

Triumph

Continued from Page 6

An overall update of the main Catamaran Clubhouse is planned at TavaWaters, formerly The Breakers, which will include a new, expanded pool area.

In addition to exterior common area improvements, as depicted above, unit improvements are underway.

Between 25 and 35 apartments will be upgraded each month over the next 18 months at the 1,523-unit

community.

‘The rebranding of

The Breakers to Tava

Waters is the first

step in taking the

original vision of

the community and

bringing it into the

future – modernizing

while staying true to

our roots.’

– Michael Stein,

Pensam Residential