Phoenix—Bascom Arizona Ventures has expanded its holdings in the Grand Canyon State with its acquisition of Arcadia Cove Apartments, a 432-unit luxury asset located in Phoenix. The sales price was undisclosed. The company’s go-to finance gurus Brian Eisendrath and Brandon Smith of CBRE Group Inc. arranged financing for the purchase. Steve Gebing and Cliff David from Marcus & Millichap represented the buyer and seller in the transaction.
“Arcadia is a prime candidate for property wide upgrades to capitalize on the recovering Phoenix multifamily market,” says Mark Brotherton, portfolio manager for Bascom Arizona. “We are excited about our newest acquisition and look forward to commencing our value-add program as soon as possible. Arcadia Cove is our 10th acquisition that we have completed in the past 12 months in the state of Arizona.”
As per usual Bascom mode of operation, the company will be executing a value-add play with Arcadia Cove. Plans include exterior and interior renovations that will equip the property with “one of the best amenity packages in the submarket,” according to Bill Wright, asset manager at Bascom Arizona Ventures.
The acquisition is part of a busy 2013 for Bascom Arizona Ventures. The firm announced the 352-unit acquisition of The Fairways in Chandler for $35.2 million in early April, about a month after announcing the $36.7 million purchase of Highlands Apartments, a 272-unit asset in Scottsdale.
The RADCO Cos. buys a 208-unit asset in Illinois
St. Charles, Ill.—The RADCO Cos. has closed its 19th real estate acquisition in the past 12 months with the purchase of Covington Court in St. Charles, Ill. The 208-unit property, which is currently 94.7 percent occupied, was purchased for $19.3 million. It will be rebranded as Ashford St. Charles.
“RADCO will continue to look to identify and acquire opportunistic multifamily properties like Covington Court,” says Norman Radow, president and CEO of The RADCO Cos. “There is liquidity in the multifamily sector, and its underlying fundamentals make it a perfect fit for us in today’s market. In addition, our reputation in this area of specialty allows us to raise our equity privately, without the need for institutional equity. We have raised over $64 million of private equity to fund our acquisitions.”
Its acquisition of the property further signifies RADCO’s strong commitment to the suburban Chicago market, where the company also recently purchased Brittany Court. That 226-unit asset was rebranded as Ashford at Geneva.
Lucent provides an $11.83M loan
Houston—Commercial real estate finance and investment advisory firm Lucent Capital arranged $11.83 million in permanent financing for the recapitalization of Oak Forest Apartments, a 321 unit garden-style apartment community in Houston.
The property is owned by an entity affiliated with Beverly Hills-based investment group Archway Holdings Corp. The property was built in 1971 and is currently over 95 percent occupied.
“The recapitalization provided sufficient proceeds to payoff the senior loan, payoff the seller carried second trust deed, and fund the required cap ex reserve,” says Lucent Capital Managing Director Farzin Emrani.
Details on the 10-year permanent loan are as follows:
- underwritten to 75 percent LTV, sub 9 percent debt yield
- one-year interest only, followed by 30 year amortization
- subordinate financing permitted