Oahu Apartments Win $56M Refinance

A group led by the Bascom Group has completed a $56 million refinancing for Oasis at Waipahu, a 406-unit multifamily property outside of Honolulu. Holliday Fenoglio Fowler arranged the deal on behalf of the borrowers, who received a 36-month, floating-rate loan with Prime Finance.

Honolulu—A group led by the Bascom Group has completed a $56 million refinancing for Oasis at Waipahu, a 406-unit multifamily property outside of Honolulu. Holliday Fenoglio Fowler arranged the deal on behalf of the borrowers, who received a 36-month, floating-rate loan with Prime Finance.

According to HFF, Prime Finance closed on the loan within three weeks. Proceeds were used to refinance the existing debt on the property, which Bascom Group bought in 2008 for more than $63 million.

The apartment market in metro Honolulu is strong at the moment. According to Reis Inc., the second quarter 2011 vacancy rate for the Honolulu market is a tight 2.3 percent. Compared with the previous quarter, rents were up 0.5 percent in 2Q11, and no new inventory was added to the market during the second quarter.

Oasis at Waipahu is located northwest of Honolulu, roughly halfway between the urban area of Kapolei and Honolulu. Waipahu is on northern shore of Pearl Harbor, and in the 19th century was the site of a sugar plantation. Originally built in 1965, the gated Oasis at Waipahu includes 374 townhomes and 32 apartments. Amenities include a clubhouse, pool, kids’ pool, laundry room, fitness center, business center and dog park.

Since Irvine, Calif.-based Bascom Group acquired the property, the company has undertaken a significant interior and exterior renovation. Oasis at Waipahu, managed by Entrada Partners out of Los Angeles, is currently 97 percent leased.

Privately owned Bascom Group specializes in value-added and distressed multifamily real estate investments, which is how it characterized the acquisition of Oasis at Waipahu. Since 1996, Bascom has completed transactions involving about 55,000 units in over 200 properties.