TODAY’S DEALS: Bascom, Oaktree Buys First Property in $250M Venture

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Bascom and Oaktree buy a 320-unit asset in California, the first investment in a new venture; Passco Companies purchases a Research Triangle asset for $38.8 million; and CBRE/New England arranges a $3.5 million refinance for New Hampshire student housing.

Bascom Group SpringsCorona, Calif.—The Bascom Group and certain funds managed by Oaktree Capital Management have structured a new venture to buy $250 million in value-added multifamily properties throughout the United States. The duo has also closed its first acquisition, The Springs Apartments, a 320-unit garden style community located at 650 Ebbcreek Drive in Corona, Calif., with a $43.2 million purchase price. OneWest Bank provided debt financing, which was sourced by Brian Eisendrath at CBRE.

“This partnership will have a strong focus on acquiring properties throughout Southern California,” says Chad Sanderson, principal for Bascom. “The Springs is located adjacent to Orange County and is surrounded by a robust employment base. As fundamentals in the region continue to strengthen, we believe the investment potential of the asset will continue to benefit.”

The Springs was built in 1987 and features 20 residential buildings on a 13.3-acre site. amenities include two pool areas, fitness center and a well-landscaped central courtyard with tot-lot and grilling stations.

Tom P. Moran, director in the California Office of Moran & Co., who represented the seller, tells MHN that “The Springs represents the ideal value-add deal that was acquired well below replacement costs. By executing their planned value-add strategy, Bascom can successfully position the property to achieve strong rent growth, particularly since job growth has nearly doubled in the Inland Empire between 2012 and 2013 and is forecasted to add another 40,000 jobs by next year.”

Passco Cos. purchases Research Triangle asset for $38.8M

Column at WakefieldRaleigh, N.C.—Passco Companies LLC has acquired its fourth multifamily property in the Raleigh-Durham area of North Carolina. The company acquired the 324-unit The Columns at Wakefield apartment homes for $38.8 million, bringing its total investment in the region’s multifamily market to $135 million in the past year.

“The Research Triangle area encompassing the Raleigh-Durham-Chapel Hill markets continues to demonstrate its strength as an investment target, making this property exactly aligned with our ongoing Next X investment strategy,” says Larry Sullivan, president of Passco Companies. “The key is, rather than looking solely at top-performing markets over the past 10 years, we identify and invest in markets that we believe are likely to be top performers over the next 10 years.”

Raleigh-Durham is poised to be a top performing market, according to Ogal Claspell, vice president, Realty Investments, who notes that local universities will drive renter growth among students and young professionals, while the area’s Research Triangle Park remains a catalyst for future population and job growth.

“This is a market that already benefits from above-average fundamentals,” explains Claspell. “As one of the largest research parks in the world, Research Triangle Park (RTP) employs more than 38,000 full time employees, and is expected to employ more than 100,000 in the coming years.  In addition, median household income within three miles of The Columns at Wakefield apartment homes is currently $75,453, which is much higher than the national average.”

Based on this data and the property’s location within the master-planned community of Wakefield Plantation (a 2,220 acre master-planned community surrounding a Tournament Players Club golf course), Passco expects the Class-A Columns at Wakefield property to attract strong rental demand throughout its anticipated seven- to 10-year hold.

Gary Goodman, senior vice president, acquisitions,  Passco Cos., notes, “To maximize value and further drive renter demand for the property, we plan to complete the renovations that were begun by the previous owner.”

These renovations will include individual unit upgrades, including the installation of vinyl wood plank flooring, ceiling fans, modern plumbing fixtures, track lighting and new microwaves.

In addition, improvements will be made to the community’s shared amenities, including upgrades to the existing clubhouse, as well as the addition of a cyber-lounge and pet spa.

Built in 2003, The Columns at Wakefield property features one-, two- and three-bedroom units, ranging in size from 587 to1425 square feet. Apartments feature French doors, vaulted ceilings with crown molding, breakfast bars, washer/dryer connections, walk-in closets and large patios or balconies. The gated community is within walking distance of shopping, dining and entertainment.

CBRE/NE provides $3.5M to refinance New Hampshire student housing

DennisonRdDurham, N.H—CBRE/New England’s capital markets team has completed a $3.5 million refinance for an 85-bed, 26-unit student housing property located at 5-7 Dennison Road in Durham, N.H., on the edge of the University of New Hampshire campus. The borrower was Golden Goose Capital LLC.

“We are pleased to have facilitated this transaction on behalf of GGC, a fast-growing student housing operator who has vastly improved operations at the property,” says John Kelly, CBRE/NE first vice president of Multi-Housing Debt & Structured finance. “We placed the deal with a CMBS shop that closed the deal in a 30-day timeframe.”

5-7 Dennison Road contains two attached two- and three-story buildings. Over the last 12 months, the sponsors have upgraded units and common areas.

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