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CHANDLER, AZ-Scottsdale-based Bascom Arizona LLC has landed another 320 units in its plan to spend $400 million on multifamily properties in and around metro Phoenix. The 92%-leased Chandler Place is the latest asset to flow into the portfolio.
David Fogler of Grubb & Ellis/BRE Commercial LLC in Phoenix represented the local seller, Magellan Chandler Place LP, which sold the property at 2222 N. McQueen Rd. for $22.4 million to Bascom Arizona. Since spring 2004, Bascom Arizona and the San Francisco-based Rockwood Capital LLC have acquired more than $150 million of multifamily properties in Arizona. Recent acquisitions included the 460-unit Club Oasis, also in Chandler, and 196-unit Sunrise Village in Mesa.
"We acquire when the timing appears to be right," says Steven Hovland, director of asset management for Bascom Arizona. "We don't have a specific deadline, but are talking about doing this as quickly as possible."
The Chandler Place acquisition is the fifth purchase in as many weeks for Bascom Arizona. Hovland says its location is one of the particularly appealing features. "The 1996 construction, along with the purchase price, told us there was definitely a value-added opportunity to do some things to fix up the property and improve it in the submarket," he tells GlobeSt.com.
The 19.8-acre development contains three swimming pools and spas, a playground, clubhouse, business center and fitness center. The mix ranges from one-bedroom units with 790 sf to three-bedroom apartments averaging 1,275 sf. The average rent is $805 per month. Though the property overall is, in Hovland's words, "well-designed," Bascom will invest $2.5 million, or $8,000 per unit, to renovate the interiors and common areas.
Focusing on the purchase and upgrade of multifamily properties throughout the Phoenix area has been Bascom Arizona's MO for a variety of reasons. Hovland notes that improving market conditions, decreasing vacancies and an increase in net effective rents are attractive for Bascom. "We don't like to rely on market improvement only as a reason to go into a market," he stresses. "We like to see what we can do to improve a property's position by making improvements to the common area and amenities and improving the property's position within the submarket."
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