Bascom loading up on apartments…$105+ million spent on 1,415 units in two months

Mesa/Tempe – If two deals go down as were scheduled at press time, Bascom Arizona Ventures LLC will have invested more than $105 million in buying 1,415 units in four communities in the Valley within the past eight weeks. In two transactions slated to close at press time, entities formed by Bascom Arizona Ventures were expected to pay a combined $49.92 million for 784 apartments in two Valley projects. Bascom Arizona Ventures LLC was formed by The Bascom Group in Irvine, Calif. (Derek Chen, Jerome Fink, David Kim, principals). Glenn Daiutolo, who operates from Scottsdale, completes the partnership of principals who together form Bascom Arizona Ventures LLC. In one of the deals set to close September 26, a company formed by Bascom Arizona Ventures was expected to pay $45.57 million ($67,367 per unit) to acquire the 528-unit South Creek apartments at 4424 E. Baseline Road in Phoenix. In the other sale, a Bascom Arizona Venture entity was supposed to pay $14.35 million ($55,859 per unit) to acquire the 256-unit Madera Pointe apartments at 445 S. Dobson Road in Mesa. The seller in both transactions were companies formed by The Variable Annuity Life Insurance Co., c/o AIG Asset Management. The deals were brokered by Jim Crews and Brett Polachek of Cushman & Wakefield of Arizona Inc. in Phoenix. Both sales involved loans, but the deeds of trusts were not available at press time. The previous owner of South Creek and Madera Pointe lost the assets to foreclosure. In December 2006, Redhill Realty Investors in San Diego, Calif. (Russell Dixon, CEO) paid $46.8 million ($88,636 per unit) to purchase South Creek. In October of 2006, BREW reported Redhill Realty Investors paying $21.25 million ($83,008 per unit) to acquire Madera Pointe apartments. At one point, Redhill Realty Investors owned two other apartment properties in the Valley. No word on the disposition of those assets. In August, BREW reported Bascom Arizona Ventures making its first investment in the Phoenix market in almost six years. In that purchase, the company formed by Bascom Arizona Ventures paid $27.9 million ($84,545 per unit) to buy the 330-unit Estates on Maryland apartments at 1802 W. Maryland Avenue in Phoenix. Three weeks later, BREW reported Bascom Arizona Ventures paying $27.2 million ($90,365 per unit) to acquire the 301-unit Coldwater Springs apartments at 12115 W. Van Buren Street in Avondale. Bascom Arizona Ventures is looking to purchase additional multi-family communities in the Valley. Between 2004 and 2005 Bascom Arizona Ventures acquired 28 properties totaling 9,400 units. The company sold those properties in bulk before the market crashed, but also lost some assets that were acquired at peak market times. The Bascom Group is a private equity firm that specializes in value-added multi-family, commercial and non-performing loans and real estate-related investments and operating companies. The Bascom Group focuses on buying garden style, mid-rise and high-rise apartments. The asset class ranges from A+ to D and the locations are preferred to be A+ to C+ with property sizes running from 80 units in a single asset to 5,000+ units in a portfolio. The company likes 1920’s to new construction. The company is buying apartments in 10 states across the country. Fink is the contact for Bascom Group . . . (949) 955-0888. Daiutolo is at (480) 315-1200. The C&W agents are at (602) 253-7900.


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September 2012