Bascom Group Picks an Orchid in Texas

By Dees Stribling

Orchid Apartments

Dallas—The Bascom Group has acquired the 260-unit Orchid Apartments for $20.4 million ($78,461 per unit) in McKinney, Texas, which in recent years has become a far north suburb of Dallas.

Built in 1997 at 2700 N. Brook Dr., Orchid consists of 24 two-story residential buildings and a standalone leasing center, all on 20 acres. It offers a mix of 25 percent one-bedroom units and 75 percent two-bedroom units averaging 873 square feet. Amenities include a clubhouse, small fitness center, pool, tennis court and green space. According to Yardi Matrix, the property is currently managed by Pinnacle Living.

The buyer is planning upgrades. Jason Hanna, senior vice president of portfolio operations for the Texas region, says that the company will “initiate a renovation program that will reflect the needs of the rental community.”

McKinney is a growth market. According to the Census Bureau, among cities with more than 50,000 people, McKinney was the nation’s fastest-growing city from 2000 to 2003 and again in 2006. The most recent population estimate, published at the beginning of this year, is about 161,900. In 2010, the city had 131,000 people, after seeing growth of 141 percent during the decade between 2000 and 2010.

Sperry Van Ness brokered the deal. John Brownlee and De’On Collins of HFF arranged a $15.3 million debt financing from EastWest Bank, and James D’Argenio sourced and managed the acquisition for Irvine, Calif.-based Bascom.

Photo courtesy of Yardi Matrix