PHOENIX, ARIZ. — Bascom Arizona Ventures has continued its buying spree in Arizona, acquiring its third and fourth multifamily properties in the state in the last two months.
The Irvine, Calif.-based company acquired Brookstone at the Foothills Apartments, a 528-unit community near Phoenix for $35.6 million, or $67,367 per unit. Bascom also purchased Madera Point Apartments, a 256-unit community in Mesa, Ariz., for $14.4 million, or $56,000 per unit.
The acquisition comes on the heels of the company's two recent deals in the Phoenix metro area. Bascom acquired the Coldwater Spring Apartments for $27.2 million and Estates of Maryland Apartments for $27.9 million.
Bascom had previously acquired thousands of units in the Phoenix metropolitan area between 2004 and 2007, but decided to sell a dozen properties in 2007. “We feel now is the best time to get back in the Arizona region,” says Mark Brotherton, asset manager for Bascom Arizona Ventures. He adds that the company is looking to expand even more, and is expecting to close on another property in the next 30 days.
“We are continuing to seek and acquire assets that range from 'A' to 'C' quality, preferably with infill location and with a value-added component,” says Brotherton.
The group plans to add value to both of the recently acquired properties through renovations and by implementing aggressive leasing and marketing programs.
Brookstone is a Class B asset situated on 23.5 acres with an average unit size of 894 square feet. The community features two swimming pools and spas, secure access gates, fitness center and business center.
The interiors include a fully equipped kitchen with microwaves, vaulted ceilings, private patios and balconies and washer/dryers. The property is located near the METRO Light Rail, which provides direct access to major business hubs in Phoenix.
Madera Point is also a Class B asset with an average unit size of 753 square feet. Amenities include a swimming pool and spa, limited access gates, clubhouse, basketball court and reserved covered parking.
Apartment interiors include a fully equipped kitchen with microwave, vaulted ceilings and washer/dryers and fireplaces in select units. The property is adjacent to major freeways, such as Highway 60, and within a half-mile of the METRO Light Rail.
“These properties are your classic examples of distressed sales with potential for value add and growth,” says Brotherton. “With our extensive renovation scope and budget, Brookstone at the Foothills and Madera Point will have amenity packages that will enable the properties to excel in their submarkets.”
Gary Mozer and Katie Rodd of George Smith Partners arranged the financing for the purchases. Jim Crews of Cushman & Wakefield represented the buyer and seller in the transactions.
Arizona-based Morrison, Ekre & Bart Management Services will oversee property management for both communities.
— Liz Burlingame