Scottsdale, Ariz.— Bascom Arizona Ventures has closed the acquisition of the Highlands Apartments, a 272-unit property in Scottsdale, for $36.7 million. It’s the eighth apartment property that the company has bought in Arizona.
The Highlands sits on 13.3 acres located in the Scottsdale Horizon Master Plan, with an average unit size of 903 square feet. Currently the interiors haven’t been upgraded, but according to Irvine, Calif.-based Bascom Group, the property is a prime candidate for interior upgrades, to capitalize on the recovering multifamily market in Scottsdale.
Metro Phoenix’s for-sale housing market has experienced a well-publicized recovery during the last year or so, but that hasn’t dented the forward progress of the local apartment market. According to investment specialist Marcus & Millichap, apartment vacancy rates market-wide dropped from 7.3 percent to 6.1 percent in 2012. Moreover, the market is on track to add a net of 61,600 jobs in 2013, up from 50,200 last year, which will spur demand for apartments.
Bascom Arizona recently closed on seven other deals in Arizona, including Coldwater Springs Apartments, Estates on Maryland Apartments, Brookstone at the Foothills Apartments, Madera Pointe Apartments, Alpine Ridge Apartments, Country Brook Apartments, and Little Cottonwoods Apartments. The company’s in-state acquisitions during the last six months total 2,656 units, and it says it’s expecting to close an additional property in the near future.
CBRE’s Brian Eisendrath and Brandon Smith arranged the financing in the Highlands deal, while CBRE’s Sean Cunningham represented the buyer and seller. Morrison, Ekre & Bart Management Services has been tasked with onsite property management.