TODAY'S DEALS: Bascom Completes Largest Hawaiian Transaction Since 2007

3 min read

The Bascom Group buys a Hawaiian asset for $73.5 million; ARA brokers a $20.5 million sale in Colorado; and Cohen Financial finds a Canadian life company as capital source to fund a $7.1 million loan.

Oasis at Waipahu Apartments

Waipahu, Hawaii—The Bascom Group has acquired Oasis at Waipahu Apartments, a 406-unit community located in Waipahu, Hawaii. The $73.5 million sales price makes this the largest multifamily transaction in Hawaii since 2007.

“The acquisition of Oasis represents the sixth acquisition in Hawaii for Bascom,” says Andrew Newton, principal at The Bascom Group. “The Hawaii market has extremely high barriers to entry with high land and construction costs. With the recovering tourism industry and lack of new construction, the rental market has seen significant gains in occupancy and revenue over the past year.”

Oasis at Waipahu is situated on 18.3 acres. It has a unit mix with 86 percent two-bedroom townhomes units and 14 percent three-bedroom units. Community amenities include an adult pool, children’s splash pool, business center, fitness room, and children’s playground.

Bascom’s Newton and Paul Miszkowicz managed the purchase. Mark Erland at Holliday Fenoglio Fowler had previously arranged debt financing. Entranda Partners will provide onsite property management.

ARA sells 310-unit asset in Colorado Springs

Sunset Creek

Colorado Springs, Co.—ARA has brokered the sale of Sunset Creek, a 310-unit asset located in Colorado Springs, Co. ARA represented the seller, Dallas-based WillMax Capital Inc., in the $20.5 million transaction. The asset was picked up by an affiliate of Seagate Properties Inc., a California-based multifamily investment company.

“Sunset’s location, in an area designated for redevelopment by the city of Colorado Springs, makes it a perfect candidate for future appreciation,” says ARA senior vice president Ken Green.

Sunset Creek was built in 1996 and has an amenity package that includes a fitness center, heated swimming pool, and a common courtyard with grills, and both tennis and volleyball courts.

Cohen Financial finds Canadian life company as capital provider for $7.1M loan

Irvine, Calif.—Cohen Financial, a national real estate capital services firm, announced that it arranged a $7.1 million loan in connection with the acquisition of the Lindsay Palms Apartments.

The “Class A” multifamily property is located at 2855 East Broadway Road in Mesa, Ariz. close to US-60 and the upscale Dana Park shopping center. The Lindsay Palms Apartments is a 141,500-plus square-foot property that features 132 units and is fully leased.

Mark Strauss, managing director in Cohen Financial’s Irvine office, secured the 10-year, fixed-rate loan at a 62 percent loan-to-value with a 30-year amortization schedule. The borrower is a Canadian commercial real estate investor. The lender is a life insurance company based in Vancouver, British Columbia.

“The major issue we faced was to secure financing for a Canadian borrower who owned only one property in the U.S.,” says Strauss. “Since this was the buyer’s first multifamily transaction in the U.S the GSEs were not candidates for this loan. We were, therefore, constrained by a limited pool of lenders. Contributing to the challenge was a recent history of rent increases and the compressing cap rates in the market, which have dramatically increased the sales prices of multifamily properties. We were able to secure a lender that understood the value of the property, the nature of the market and was comfortable with our Canadian borrower.”

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