The just-bought asset sits in front of Oak Creek. Akins says it also has lower rents than its neighbor--for now. The 88%-leased acquisition's one- and two-bedroom units average 929 sf while rent runs 60 cents per sf or $553 on average. "It's a challenge when you are behind a property with lower rents," Akins tells GlobeSt.com. "But, there is upside in the rents after we rehab it. It gives us a lot more firepower in raising rents and scaling back concessions."

When Bascom bought the 23-building Oak Creek, rents averaged $637 per month for units averaging 957 sf. Akins says Oak Creek, still in the midst of a renovation, has had its rents boosted roughly 10% as a result of the upgrade plan, which is costing $3,000 to $5,000 per unit.

Akins predicts it will take 18 months to two years to complete interior and exterior work on the second complex, also in line for landscaping changes. When the work's done, he says the class B block will be sized up for resale. The deal puts Bascom in control of a hard corner at Forest Ridge Drive and Oak Creek Lane, with leasing centers on both thoroughfares. "It will be bigger and attractive to more investors as one deal," he says.

Akins sourced the deal. Bascom's acquisitions manager Jerry Hess did the due diligence and senior acquisitions analyst James Dargenio managed the closing. Just like with Oak Creek, the equity partner is Washington, DC-based Carlyle Group. Lee Norman with George Smith Partners in Los Angeles arranged financing through Capmark Finance Co., which had Edward Zimbler and Adrienne Miller structuring its terms.