Bascom Arizona Ventures Grabs a Class-A Asset

Bascom completes a $27.2 million purchase; Steadfast Income REIT acquires a property in Louisville; and HFF closes the sale of a 240-unit community in Dallas.

Coldwater Springs Apartments

Avondale, Ariz.—Bascom Arizona Ventures has purchased Coldwater Springs Apartments, a 301-unit community located in Avondale, Ariz. The Class A asset carried a $27.2 million price tag, which equates to $90,365 per unit. CBRE Group Inc. worked to arrange financing for the purchase. Ares Management provided the debt financing. The acquisition comes on the heels of BAV’s purchase of Estates at Maryland, a 330-unit Class A community located in Phoenix.

“After our successful 12-property portfolio sale in 2007, we feel now is the best time to buy back into the Arizona region,” says Mark Brotherton, asset manager for Bascom Arizona Ventures. “This will be our second purchase in the past month, and we are looking to expand even more with additional acquisitions slated to close in the next month.”

Coldwater Springs was built in 2007 and is situated on 16.5 acres. The average unit size is 956 square feet. Community amenities include two swimming pools with private cabanas, a billiards and game room, a full clubhouse, 24-hour fitness center, a state of the art business center, and movie theater. The asset is located in the Phoenix metro area with close vicinity to the METRO light rail, Downtown Phoenix, and West Gate City Center.  

The group plans to add value to both of the recently acquired properties by upgrading unit interiors and improving common areas in order to compete with newer Class A assets in the market.

Steadfast Income REIT buys Louisville property for $15.1 million

Louisville, Ky.—Steadfast Income REIT has completed its $15.1 million acquisition of Valley Farms Apartments, a 160-unit garden-style community located in Louisville, Ky. The REIT now has invested over $260 million in 16 apartment communities (over 3,500 units) in seven Midwestern and Southern states.

“This is our fourth Louisville property,” says Rodney Emery, chief executive officer and president of Steadfast. “We feel that the population growth in the key renting demographic of 25- to 34-year-olds in combination with strong projected job growth and low new apartment construction will tighten up the market and drive down vacancies over the next several years.”

Valley Farms was constructed in 2007 and was 97 percent occupied at the time of purchase. The asset consists of 10 two-story buildings on a 13.5-acre site. Amenities include a swimming pool, fitness center, barbecue area and a business center.

HFF closes sale of and arranges financing for a 240-unit asset in Dallas

Trinity Oaks

Dallas—Holiday Fenoglio Fowler announced yesterday that it closed the sale of and arranged financing for Trinity Oaks, a 240-unit Class B community located in Dallas. HFF marketed the property on behalf of the seller. It was purchased by Allen Harrison Co., a privately-held real estate investment and services firms. Details of the transaction were not disclosed, but the property was purchased clear of debt.

HFF’s debt placement team also arranged a 10-year fixed-rate acquisition loan with two years of interest-only payments through Arbor Commercial Mortgage on behalf of the buyer.

The eight-building community was built in 1983 and includes one- and two-bedroom units averaging 627 square feet. Allen Harrison Co. plans to complete extensive interior and exterior renovations to property through its affiliate, AHC construction.