Bascom Arizona Acquires Coldwater Springs Apartments
- Sep 12, 2012
Scottsdale, Ariz.—Coldwater Springs, a five-year-old Class-A property in Avondale, Ariz., has been acquired by Scottsdale, Ariz.-based Bascom Arizona Ventures for $27.2 million. The announcement was made September 5 by The Bascom Group LLC.
Coldwater Springs is a 301-unit community situated on more than 16 acres, with an average unit size of 956 square feet. Its location is close to METRO light rail, downtown Phoenix, and the heavily-patronized West Gate City Center.
Apartments feature nine-foot vaulted ceilings, ceramic tile floors, private balconies and patios, full-size washer-dryers, walk-in closets and roman tubs with tile surround. Common-area amenities include two resort-style swimming pools with private cabanas, billiards and game room, clubhouse, movie theater, 24-hour fitness center and state-of-the-art business center.
The community also offers many energy-efficient features, including Energy Star appliances, dual pane low-E windows, heating and cooling efficiencies, and energy- efficient lighting.
Bascom Arizona Ventures intends to upgrade both unit interiors and the common areas at Coldwater Springs to make the property more competitive with Class A properties in the area, thereby enabling maximization of net effective rents as the market recovers, reports Bill Wright, an asset manager overseeing renovations for Bascom Arizona Ventures.
“We were very successful with our business plan during the last cycle,” he says.
Bascom Arizona Ventures worked with Brandon Smith and Brian Eisendrath of CBRE to arrange the purchase’s financing. Debt financing was provided by Ares Management. Jim Crews represented the buyer and seller in the transaction. Onsite property management will be overseen by Arizona based Morrison, Ekre & Bart Management Services (MEB).
The purchase of Coldwater Springs comes mere weeks after the company acquired another Arizona property, the 330-unit Class A rental community Estates at Maryland in Phoenix.
Bascom Arizona Ventures had previously acquired thousands of units in the Phoenix metropolitan area between 2004 and 2007, but decided to sell a dozen properties in 2007. “We feel now is the best time to get back in the Arizona region,” says Mark Brotherton, asset manager for Bascom Arizona Ventures, adding Bascom is looking to expand even more, and expecting additional acquisitions to close within the next month.
“We are looking to acquire assets that range from Class As to Cs, preferably in in-fill locations and with value-added components,” he adds.