The Bascom Group of Irvine, Calif., has acquired Jefferson Stonebriar, a newly built 424-unit, Class A multifamily community in Frisco, Texas. JPI, the asset’s seller, is an active developer in the Dallas Metroplex.
Debt financing was arranged by Tip Strickland and Braden Harmon of Berkeley Point Capital.
Brian Murphy and Richard Furr of ARA represented the seller while James D’Argenio and Chang Liu sourced and managed the acquisition for Bascom.
“We acquired a best-in-class asset in a market with outsized economic growth, blue-chip schools, and excellent demographics,” Jason Hanna, Bascom’s senior vice president of operations, said in a prepared statement.
Jefferson Stonebriar consists of three buildings spread across nine acres. The unit mix is comprised of 68 percent one-bedroom units, 25 percent two-bedroom units and 6 percent three-bedroom units with space ranging from 749 square feet to 1,365 square feet. Rents at the property, which is 91.1 percent occupied, range from approximately $1,200 to $2,410, according to Yardi Matrix data.
Community amenities include a clubhouse, fitness center, theater room, resort-style pool, conference room, pet park, picnic area with outdoor fireplace and concierge services.
Platinum Corridor Pipeline
The property is located in the fast-growing city of Frisco, which has seen its population increase by 30 percent over the past five years and is projected to grow another 25 percent over the next five years. It’s located in the area known as the Platinum Corridor and is home to major corporations including FedEx, Capital One, Frito-Lay and Liberty Mutual.
At least three major mixed-use commercial projects totaling about $3.4 billion, including The Star in Frisco, Frisco Station and The Gate, are under construction in Frisco. In July, JPI broke ground on Jefferson at the Gate, a 425-unit luxury multifamily community within the $1 billion master development which will include more than 650,000 square feet of office space; 130,000 square feet of retail space and a luxury hotel.
JPI, which has offices in Irving, Texas, as well as California, Arizona and New York, has numerous other projects in development in the DFW metroplex, most of them on track for delivery in 2019 and 2020. In June, JPI broke ground on the second phase of development at its Jefferson West Love community in northwestern Dallas. Other projects include Jefferson Alpha West and Jefferson East Branch, both in Farmers Branch, Texas, and set for completion in 2020. Late last month, JPI closed on phase two of Jefferson Mercer, also in Farmers Branch, which will add 416 homes to 424 already planned at the site.
“We have underwritten the apartment deliveries in the near term. Over the long-term, we believe the driving forces behind Frisco’s success will strengthen and allow for meaningful property-level revenue growth without renovation risk,” D’Argenio said in a prepared statement.
Meanwhile, The Bascom Group has been busy lately on the West Coast, most recently purchasing Island Apartments, a 78-unit community in Pico Rivera, Calif., for $12.6 million. The firm acquired Sleepy Hollow Apartments, a 25-unit apartment community in Anaheim Hills, Calif., for $7.5 million in June. A month earlier, Bascom bought Sunset Cove Apartments, a 123-unit multifamily asset in Costa Mesa, Calif., for $33 million.