Spirit Bascom Completes $43.4M Connecticut Purchase

Spirit Bascom Ventures buys a $43.4 million property in Connecticut; Kennedy Wilson grabs a $41 million asset in Washington; and NorthMarq arranges $38 million in acquisition financing supplied by a life insurance company.

Jefferson at 55/77

South Norwalk, Conn.—A joint venture between Spirit Investment Partners and The Bascom Group known as Spirit Bascom Ventures has completed its $43.4 million acquisition of Jefferson at 55/77 Water. The 136-unit Class A luxury asset last sold in 2007 for $51 million and was subsequently foreclosed upon by its mezzanine lender. Cooper-Horowitz arranged the financing for the purchase, which was an off-the-market transaction.

Built in 2007, the community overlooks the Norwalk River and is the only Class A, mixed-use asset within walking distance to both the SONO retail and restaurant district and the South Norwalk MTA station, which provides direct Manhattan access.

“While our primary business is to acquire more traditional value add properties requiring substantial capital improvement or a management intensive turnaround, the Jefferson at 55/77 Water transaction offered an excellent opportunity to demonstrate our platform’s ability to take quick, decisive action when presented with the opportunity to acquire a class A asset at a significant discount to replacement cost,” says Scott Zwilling, a principal with Spirit Investment Partners.

Kennedy Wilson buys Washington asset for $41M

Harrington Square

Renton, Wash.—Kennedy Wilson has acquired Harrington Square, a 217-unit community located in Renton, Wash. The purchase price was $41 million. Kennedy Wilson invested $15 million of equity into the transaction with Fannie Mae providing $26 million of financing at 3.35 percent, fixed for 10 years.

Built in 2011, the property is a core asset in north Renton with east access to the I-90 corridor, which is home to companies such as Microsoft, Costco World Headquarters, Siemens and Farmers Regional Headquarters.

“Harrington Square fits our multifamily value-added acquisition program of targeting projects in job-centric, commuter-friendly locations such as downtown Renton, where the Boeing Company is producing its newest plane, the Dreamliner, and jobs are plentiful,” says Bob Hart, president of KW Multifamily Management Group. “This asset will be well positioned to take advantage of rental income growth opportunities in the Seattle metro area, following its stabilization and recent lease-up.”

NorthMarq arranges $38M acquisition financing supplied by life insurance company

North Lauderdale, Fla.—Alison Williams, assistant vice president of NorthMarq’s Tampa regional office, and Stephen Whitehead, senior vice president and senior director of NorthMarq’s Dallas regional office, cooperated to arrange acquisition financing of $38 million for Parrot’s Landing. Financing was based on a 10-year term and a 30-year amortization schedule and was arranged for the borrower by NorthMarq through its relationship with a correspondent life company.

Parrot’s Landing is an institutional-quality, 560-unit market-rate rental community situated on a 29.5 acre site in North Lauderdale, Fla. Constructed in two phases in 1987 and 1997, the property consists of one-, two- and three-bedroom units and features community amenities including two clubhouses, three swimming pools, sundeck, fitness center, lighted tennis court, car care center, barbecue area, covered picnic area, business center and jogging trails. The property was purchased by a highly regarded Toronto-based private real estate investment company.