Bascom Group Closes $62.5M Refinancing of Denver's Viceroy Observatory Park With JLL, Prime Finance

The Bascom Group, LLC has completed a $62.5 million refinancing of Viceroy Observatory Park, a 275-unit multifamily community in Denver, Colorado, the firm announced Nov. 6. Prime Finance provided the loan, and JLL arranged the financing.

Jamie Kline and Kyle White of JLL arranged the transaction, with Shawn Cully and Roy Bezkostny of Prime Finance providing the $62.5 million loan. Bascom acquired the property in May 2018 for $92.5 million, or approximately $336,364 per unit.

Loan Terms and Deal Structure

The refinancing replaces a loan that matured in October 2026. The new loan carries a two-year initial term and three additional one-year extension options. Bascom said the financing reduces near-term maturity risk and gives additional time for Denver operating fundamentals and property values to recover.

The $62.5 million loan equals approximately $227,273 per unit and about 67.6% of Bascom's 2018 purchase price. Bascom conducted a competitive process for the refinancing. AMC will continue to provide property management services, and SD-Cap will oversee property renovations and upgrades.

About Viceroy Observatory Park

Viceroy Observatory Park is located at 1910 S. Josephine Street in Denver, one block from the University of Denver. Mill Creek Residential developed the community, which was originally developed in 2018. Units feature 9-foot to 17-foot ceilings, quartz countertops, custom tile backsplashes, stainless steel appliances, internal speaker systems and custom closets.

The unit mix is 20% studios, 60% one-bedroom units and 20% two-bedroom units, or roughly 55 studios, 165 one-bedrooms and 55 two-bedrooms. Community amenities include a pool and spa, a two-story fitness center, an outdoor barbecue area and fire pit, a coffee bar, a game room, a dog wash station, bike storage, and mountain and Denver skyline views.

Since acquiring the property, Bascom has modernized the pool area, enhanced security and exterior lighting, added Nest thermostats and upgraded interior closets. Denver's primary employment centers, including Downtown Denver, Denver Tech Center, Inverness Business Park and Meridian International Business Center, are within a 30-minute commute.

Denver Multifamily Market Context

Denver's multifamily market is showing signs of rebalancing as new supply slows and renter demand absorbs recently completed inventory. According to CBRE's third-quarter 2026 market report, trailing 12-month net absorption totaled 7,346 units, compared with 6,481 completions. Just 1,290 units were completed during the quarter, the lowest quarterly total in five years.

Average occupancy was 93.9%, up 40 basis points year over year. Average rent per unit was $1,776, up 0.6% quarter over quarter, the second consecutive quarterly increase, but still 2.9% below the prior year. CBRE's Denver outlook characterizes the market as having passed its cyclical trough.

Executive Comments

"While there are current headwinds in the capital markets environment, this refinance demonstrates continued lender interest in high-quality, well-positioned assets. We appreciate the efforts of the JLL Capital Markets team and are excited to continue executing the business plan for the asset," said Jim Singleton, Senior Vice President and Principal of Acquisitions for Bascom.

Paul Zakhary, Principal at Bascom, added, "Denver fundamentals are showing early signs of recovery which are reflected in Viceroy's recent leasing and operational improvements. We have the right team in place to navigate the current market cycle and capitalize as demand strengthens throughout the metro."

Bascom's Acquisition Activity and Colorado Footprint

Bascom said many institutional buyers have remained on the sidelines during the multifamily pricing reset that followed the interest rate increases of 2022 and 2023. Since rates began rising, the firm has acquired 16 multifamily communities totaling 3,718 units for more than $900 million. Those properties were built from the 1960s through 2024.

In Colorado, Bascom has acquired 32 properties totaling 11,082 units with a total capitalization of $1.3 billion over the past 18 years, and the firm was recognized as the state's largest multifamily owner in the early 2000s.

Bascom is a minority-owned private equity firm founded by principals Derek Chen, Jerry Fink and David Kim. The firm specializes in value-added multifamily, commercial and non-performing loan investments. Since 1996, it has completed more than $23.0 billion in multifamily value-added transactions encompassing 368 properties and more than 94,272 units.

Outlook

The refinancing gives Bascom additional time and flexibility to operate Viceroy Observatory Park through the current market cycle while maintaining a focus on long-term asset performance. Slowing deliveries and positive net absorption in Denver provide the backdrop, while year-over-year rent declines indicate the recovery remains incomplete.

Sources

• The Bascom Group press release via PR Newswire: https://www.prnewswire.com/news-releases/the-bascom-group-completes-62-5-million-refinancing-of-viceroy-observatory-park-in-denver-co-302932047.html