Bascom Arizona Ventures Acquires Multifamily Property
Bascom Arizona Ventures, LLC (BAZV), an affiliate of a prominent private equity firm based in California, has successfully acquired the Retreat at Speedway, a multifamily property that features 304 units. The acquisition, valued at $53.4 million, translates to approximately $175,658 per unit. With this transaction, BAZV continues its strategic efforts to enhance its real estate portfolio, supported by their current fund offering, Bascom Value Added Apartment Investors VI, LLC.
Property Highlights and Future Improvements
The Retreat at Speedway, completed in 2001, is strategically situated along Speedway Boulevard with scenic views of the Catalina Mountains. This prime location offers residents easy access to the desirable Catalina Foothills and major employment centers. The property itself boasts spacious, open-concept one- and two-bedroom apartments combined with a range of attractive amenities, including a swimming pool, spa, fitness center, and a welcoming clubhouse.
New ownership sees significant potential in the property and has put forward plans for essential capital improvements aimed at enhancing resident experience. This improvement program includes upgrades to the clubhouse and fitness areas, as well as renovations of the residences. Such developments are expected to create added value for the residents and the property alike.
Recent Acquisition and Market Commitment
This acquisition marks BAZV's first significant property investment since early 2020. Joe Daiutolo, Acquisitions Manager for BAZV, expressed the firm's commitment to disciplined investment strategies, stating, "This acquisition reflects our dedication to enriching community living through thoughtful renovations designed to elevate the resident experience while maximizing the property’s long-term potential."
Financing and Management Partnerships
BrightSpire Capital Acquisitions, LLC facilitated debt financing for the acquisition. The financing was arranged by a skilled team at Institutional Property Advisors (IPA). IPA also provided valuable advisory services to both the buyer and seller during the transaction. Additionally, Bryten Real Estate Partners, a reputable property management company based in Arizona, will oversee the operational management of the Retreat at Speedway.
Through Bascom Value Added Apartment Investors VI, LLC, BAZV focuses on acquiring multifamily properties across the nation. This fund emphasizes properties that can be revitalized through improvements, management enhancements, and addressing distressed situations. Currently, the fund holds six apartment properties with an impressive $83 million invested in equity, actively seeking to raise an additional $70 million to further its acquisitions.
Strategic Vision for Fund VI
Chad Sanderson, the Fund VI Manager, shared insights into their investment strategy, emphasizing the importance of capital preservation, long-term value creation, and consistent cash flow. He outlined a favorable market environment for deploying disciplined capital. Joe Ferguson, Vice President, further elaborated on the acquisition's strategic importance, stating, "The Retreat at Speedway illustrates our approach by acquiring a quality property that not only has great potential but also at an advantageous cost, promising a strong return on investment."
About Bascom Arizona Ventures
Bascom Arizona Ventures, LLC, a collaboration between Multifamily Advisors, LLC and The Bascom Group, LLC, is dedicated to acquiring transitional multifamily assets in the southwestern region. Since its inception, BAZV has successfully executed over $1.6 billion in multifamily transactions comprising 53 properties, with more than 16,700 units in Arizona, including significant investments in Tucson.
About Bascom
The Bascom Group is a well-established, minority-owned private equity firm specializing in value-added multifamily and commercial investments. Since its founding, Bascom has acquired properties that encompass over $22 billion in multifamily transactions and maintains a strong presence as one of the leading buyers of apartment communities in the United States. They aim to enhance property values and operational efficiencies through strategic capital improvements and expert management practices.
Frequently Asked Questions
What is the recent acquisition by Bascom Arizona Ventures?
Bascom Arizona Ventures acquired the Retreat at Speedway, a 304-unit multifamily property for $53.4 million.
What improvements are planned for the Retreat at Speedway?
Plans include renovations of the clubhouse, fitness areas, and upgraded residences to enhance the living experience for residents.
Why is this acquisition significant for BAZV?
This marks BAZV's first acquisition since early 2020, demonstrating their commitment to expand their portfolio and reinvest in community living.
Who provided financing for the acquisition?
Debt financing was arranged by BrightSpire Capital Acquisitions, LLC, along with advisory support from Institutional Property Advisors.
What is the focus of Bascom Value Added Apartment Investors VI, LLC?
This fund focuses on acquiring and revitalizing multifamily properties across the U.S., emphasizing value-add opportunities.
