CREJ

1 / 32

by Michelle Z. Askeland
At the heart of conversations
about the Breakers Resort with the
original developer as well as the
new majority owner, the discussions
always end up acknowledging an
emotional connection to the project.
The property, which began with a
tumultuous, undefined start, gradu-
ally grew into a labor of love and a
vision for other multifamily commu-
nities to follow. But as the develop-
ment world caught up, the Breakers
Resort must begin its next stage.
This October, the Breakers sold to
Pensam Residential and its partners
for $350 million. With the original
developer, Koelbel & Co., staying
on as an owner, a partnership was
formed over an appreciation for the
site’s history and an eagerness for
what awaits it as they embrace the
latest iteration of a lifestyle com-
munity.
“In addition to it being a tremen-
dous investment, there was definite-
ly some emotional connection to the
beginnings and the history of the
property and wanting to play a part
in the future of it,” said Mike Stein,
Pensam Residential principal.
The Makings of the Breakers
Koelbel & Co. began acquiring the
high-density-zoned ground in the
late 1970s, during the condominium
craze. But as momentum built and
plans progressed to develop condos
on the land, the market was rocked
by the oil crash of the 1980s, said
Walter “Buz” Koelbel, company presi-
dent. To make matters worse, thou-
sands of foreclosed HUD condo units
began flooding the market.
The Koelbel company found itself
sitting with 190 acres of land, which
included a 60-acre lake in a some-
what no-man’s land location with
no concrete plans. However, a new
vision came to Koelbel on a tour of
a 1,700 unit apartment property in
Atlanta. He realized they could do
something similarly unique in Colo-
rado.
Immediately upon returning the
Denver, Koelbel set out to find a
partner. Most developers didn’t want
to wade into a joint venture, and
with the weak state of the market
and a pull of intrigue into what the
property could become, Koelbel
ARA, a Newmark Co.
The commanding Catamaran Club, a 26,000-square-foot clubhouse, was designed and built to distinguish the community from other apartments in Denver in the 1990s.
INSIDE