DENVER, CO - The Bascom Group has completed a $62.5 million refinancing of Viceroy Observatory Park, a 275-unit multifamily community located in Denver, Colorado. The property was acquired by Bascom in May 2018, for $92.5 million. Jamie Kline and Kyle White of JLL arranged the financing, with Shawn Cully and Roy Bezkostny of Prime Finance providing the $62.5 million loan. AMC will continue to provide property management services for the community with SD-Cap overseeing property renovations and upgrades.
Originally developed in 2018, Viceroy Observatory Park is an exceptionally well-built property by Mill Creek Residential, a renowned national developer. The property was constructed with high-end materials throughout the units and common areas. Units feature 9' – 17' ceilings and are designed with superior finishes such as quartz countertops, custom tile backsplashes, stainless steel appliances, internal speaker systems, and custom closets. The property consists of 20% studios, 60% one-bedroom, and 20% two-bedroom units providing a strong mix of unit plan options.
Viceroy Observatory Park features top of the line community amenities with a pool and spa, 2-story fitness center, outdoor BBQ area and firepit, coffee bar, game room, dog wash station, bike storage, and mountain and Denver skyline views. Since acquisition, Bascom has modernized the pool area, enhanced security and exterior lighting, added Nest thermostats, and upgraded interior closets.
Located just one block from the University of Denver and centrally located in Denver's major retail, restaurants and employment centers, Viceroy Observatory Park offers residents superior amenities and location. Denver's primary employment centers are within a 30-minute commute, including Downtown Denver, Denver Tech Center, Inverness Business Park and Meridian International Business Center.
Bascom conducted a competitive process for the refinance of Viceroy Observatory Park. The refinance replaces a loan that matured in October 2026 with a new two-year initial term and three additional one-year extension options. The financing materially reduces near-term maturity risk and provides additional time for Denver operating fundamentals and property values to recover.
Denver's multifamily market is showing signs of rebalancing as new supply deliveries slow and renter demand continues to absorb 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. Denver's average rent per unit increased 0.6% quarter over quarter, marking a second consecutive quarterly increase, but remaining 2.9% below the prior year. The refinancing provides Bascom with additional time and flexibility to operate the property through the current market cycle while maintaining a focus on long-term asset performance.
"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."