Bascom Arizona Ventures Acquires Tempe Community for $89M
- Mar 04, 2019
A subsidiary of The Bascom Group—Bascom Arizona Ventures—has acquired Tempo at McClintock Station, a mid-rise apartment community in Tempe, Ariz. The asset was purchased from P7 McClintock Station Owner LLC, for $89.2 million, or $210,377 per unit. MEB Management Services will manage the property.
Located at 1831 E. Apache Blvd., the community offers 423 one-, two- and three-bedroom floorplans. Tempo at McClintock Station was built in 2017 by Fore Property Co. Interior features include granite or quartz countertops, garden-style soaking tubs, energy efficient windows and lighting, stainless steel appliances, hardwood-style flooring, walk-in closets, washer/dryers and balcony/patios. Residents have access to amenities such as barbecue/picnic areas, rentable storage closets, private garages, dog park with self-service grooming, 24-hour fitness center, two resort-style pools with cabanas, cyber/tech lounge, self-service bike repair shop, package concierge service, volleyball court, community clubhouse and yoga and spin studios.
The asset is within close proximity to the Valley Metro Rail, providing access to downtown Tempe, Sky Harbor International Airport, Arizona State University and downtown Phoenix. The metro has witnessed a rent increase of 5.4 percent year-over-year through September, as well as the average occupancy in stabilized properties rising to 95.2 percent in August, up 40 basis points year-over-year, according to a December market report by Yardi Matrix.
Quality investment opportunity
The new owner will be implementing a capital improvements plan to upgrade finishes in the leasing office, pool, clubhouse and unit interiors.
Oaktree Real Estate Finance II LLC provided debt financing for the purchase, arranged by CBRE’s Brian Eisendrath, Brandon Smith and Annie Rice. Melody West’s Stephen Peters represented both the buyer and seller in the deal.
“Tempo provides an exceptional, high quality, low-risk, off-market investment opportunity in the ever-growing ASU/Tempe area,” said Mark Brotherton, portfolio manager of Bascom Arizona Ventures, in prepared remarks. “Tempo offers a new build, soon to be stabilized, core asset, with tremendous upside through mark-to-market rental rates, loss-to-lease burn off, and the elimination of lease-up concessions.”
Image courtesy of Bascom Arizona Ventures