PHOENIX--(Bascom Arizona Ventures worked with Brian Eisendrath and Brandon Smith of CBRE to arrange the financing. Sean Cunningham from CBRE represented the buyer and seller in the transaction. The onsite property management for both properties will be overseen by Arizona based Morrison, Ekre & Bart Management Services (MEB). Bascom Arizona recently closed on seven other deals in Arizona including Coldwater Springs Apartments, Estates on Maryland Apartments, Brookstone at the Foothills Apartments, Madera Pointe Apartments, Alpine Ridge Apartments, Country Brook Apartments, and Little Cottonwoods Apartments.)--Bascom Arizona Ventures closed its 8th deal in Arizona with the purchase of The Highlands Apartments, a 272-unit community located in Scottsdale, Arizona for $36.7M or $135,478 per unit.
“The Highlands offered Bascom a tremendous value add opportunity, in one of the premier locations in all of Arizona, that was priced well below replacement cost and below the prior sales price.”
The Highlands is an A- asset covering 13.3 acres with an average unit size of 903 SF, located in the highly desirable Scottsdale Horizon Master Plan. Currently, the interiors have not been upgraded and The Highlands is a prime candidate for interior upgrades, to capitalize on the recovering multifamily market in Scottsdale. Planned renovations will allow The Highlands to compete with other Class A buildings in North Scottsdale.
The property offers residents heated outdoor swimming pools, state-of-the-art fitness center and reserved and covered parking. The interiors amenities include fully-equipped kitchens, washers and dryers, spacious walk-in closets and private patios and balconies. The Highlands is located in the heart of North Scottsdale in the 85260 zip code, one of the most desirable zip codes for multi-family in the Phoenix Metropolitan Area with premiere single family nearby developments; east of Kierland, south of Silverleaf Golf Community, and west of McDowell Mountain Ranch. The Highlands location possesses convenient access to major employment centers, prime retail shopping centers, and convenient access to the Loop 101 freeway.
Mark Brotherton, Asset Manager for Bascom Arizona Ventures, comments, “The Highlands offered Bascom a tremendous value add opportunity, in one of the premier locations in all of Arizona, that was priced well below replacement cost and below the prior sales price.” Bascom Arizona Ventures has recently acquired 2,656 units in Arizona within the past six months, and is expected to close an additional property in the next thirty days. Brotherton continues, “We have closed 36 out of 37 transactions placed under contract in the state of Arizona, totaling more than 12,000 units valued over $673M. We are continuing to seek and acquire assets that range from 'A’s' to 'C’s,' preferably with 'in-fill' location and with a value-added component.”
Bill Wright, Asset Manager for Bascom Arizona Ventures, adds, “Bascom will recapitalize the property through a renovation that will equip The Highlands with one of the best amenity packages in the submarket and an enhanced interior appearance.”
About The Bascom Group, LLC: The Bascom Group, LLC (bascomgroup.com) is a private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate related investments and operating companies. Bascom sources value-added and distressed properties including many through foreclosure, bankruptcy, or short sales and repositions them by adding extensive capital improvements, improving revenue, and reducing expenses through implementation of institutional-quality property management. Bascom has completed over $6.5 billion in multi-family and commercial value-added transactions since 1996 including more than 200 multifamily properties and 55,000 units. Bascom currently ranks among the top 50 multifamily owners in the US. Bascom’s subsidiaries and joint ventures include the Southern California Industrial Fund, Rushmore Properties, Bascom Portfolio Advisors, Shubin Nadal Associates, Spirit Investors, Bascom Northwest Ventures, Bascom Arizona Ventures, and the Realm Group. Bascom’s subsidiaries also include Premier Business Centers, the largest privately held executive suite company in the US.