Bascom Group Buys Las Vegas Portfolio

The three properties totaling 390 units sold for $72 million.
Spectra at 4000. Image courtesy of The Bascom Group

The Bascom Group has acquired a 390-unit, three-property portfolio in Las Vegas for $72 million, or $184,806 per unit. The portfolio consists of Spectra at 4000, Spectra East and Spectrum at Katie.

The seller was not disclosed but Prism Multifamily Group had acquired the three assets in late 2018 from Bridge Investment Group as part of a four-property, 480-unit portfolio for $46.8 million, according to Yardi Matrix. The three properties are still listed on the Prism Multifamily Group website.

In May 2020, Prism Multifamily refinanced the portfolio with a $38.4 million Freddie Mac loan, Yardi Matrix reported. The seven-year financing package retired $40 million in acquisition loans from the 2018 purchase.

Located at 4000 E. Bonanza Road and 4521 E. Bonanza Road, Spectra at 4000 and Spectra East are located in the eastern Las Vegas Valley. The properties are minutes from I-15 and I-215 as well as Nellis Air Force Base. Spectra 4000 has 144 units and Spectra East has 118 units. Spectrum at Katie, located at 1601 E. Katie Ave., has 128 units and is located near the University of Nevada, Las Vegas, and the Las Vegas Strip. It is also close to I-15 and I-215 and is one block from public transportation. They are all in close proximity to shopping, dining, entertainment and major employment centers.

The properties have swimming pools and spas, fitness centers and some offer covered parking. They all have one- and two-bedroom floorplans and Spectra at 4000 also has three-bedroom units. Unit features include full-size washers and dryers, kitchen pantries, walk-in closets and gas fireplaces.

The portfolio expands the private equity firm’s footprint in the Las Vegas market. Bascom has been one of the most active apartment buyers in Las Vegas since its first acquisition in 2013. In 2016, Bascom became the largest apartment owner in the Las Vegas metro when it acquired a 15-property portfolio from Camden Property Trust and had 29 properties representing 8,915 units and $1.2 billion in total capitalization in the market.

As of today, Bascom has sold 19 properties representing 5,798 units for more than $1 billion. Over the past year, Bascom has completed more than $705.9 million in multifamily transactions across its national portfolio.

Growing Market

Spectra at Katie. Image courtesy of The Bascom Group

Scott McClave, Bascom’s senior principal of acquisitions, said in a prepared statement the firm is excited about the metro’s continued robust growth. He said the city is expected to see ongoing robust population growth. McClave said residents are also attracted to the lifestyle destination and the low-tax, high-entertainment, business-friendly environment that is expected to thrive in the decade ahead.

Paul Diamond, senior principal of operations, said in prepared remarks the Las Vegas market has seen significant improvement in rents and occupancies. Diamond added Bascom believes the portfolio is well positioned to provide the mid-market resident with an upgraded living environment at a reasonable price point.

Curt Allsop and Angela Bates with Newmark oversaw the sale. Debt financing was provided by Bridge Investment Group and arranged by Charles Halladay, Jamie Kline and Annie Rice with JLL Capital Markets. Cushman & Wakefield was tapped for property management services and construction management will be provided by Renu Multifamily Services.