June 04, 2007 By Tonie Auer, Southwest Correspondent
Bascom Arizona Ventures L.L.C. sold a 12-property Arizona multi-family portfolio to Irvine, Calif.,-based The Bethany Group L.L.C. for $427.5 million. That is the largest multi-family portfolio transaction in Arizona in both total sale price and number of units, according to the broker Colliers Internatinal, which handled the deal for Bascom.
Two of the properties sold were owned by Scottsdale-based Bascom in partnership with KeyBank Real Estate Capital and seven properties owned by Bascom in partnership with Rockwood Capital L.L.C.
With a total of 5,178 units, the average price per unit was approximately $82,561. The properties, including Sienna Springs (pictured), are located throughout Greater Phoenix and represent a diversified portfolio of primarily B assets, according to information from Colliers International-Greater Phoenix office. The 12 properties were purchased over a three-year period with $44.5 million invested in property renovations.
In October, Bascom Arizona Ventures added more than 1,300 Tucson apartment units to its growing Arizona portfolio with the acquisition of five apartment complexes for $49.5 million in a joint-venture partner in this transaction with Citigroup Property Investors.
The properties were acquired for $36,685 per unit. Jerry Finney, manager of Bascom told CPN that this portfolio was an opportunity to get into the Tuscon market, which is improving as vacancy rates are going down and rents are going up. Those five properties range in age from 19 to 31 years and Bascom plans to add about $13 million in improvements to the property, which is part of the company’s business plan, to acquire C to B minus grade properties that can benefit from extensive property renovations.
Lehman Brother's financed the portfolio and Cindy Cooke at Colliers International was the lead broker for Bascom and negotiated the sale with The Bethany Group. The individual properties were listed by three Metro Phoenix brokerage firms: Colliers International's Cindy Cooke, senior vice president, and Brad Cooke, vice president; CB Richard Ellis’ Sean Cunningham, vice chairman, Tyler Anderson, vice chairman, and Jack Hannum, first vice president; and Alon Shnitzer, senior associate with Marcus & Millichap Real Estate Investment Brokerage Group.
Rockwood is a private real estate investment company that currently is managing more than $2.8 billion of equity. Since 1980, Rockwood and its predecessor company have invested in more than $6.6 billion of real estate through six commingled funds and various special purpose partnerships on behalf of its investors.
Bascom Arizona Ventures is a joint venture between The Bascom Group L.L.C. of Irvine, Calif., and Multifamily Advisors L.L.C. of Scottsdale, Arizona. After this transaction, Bascom Arizona Ventures owns and manages an additional 4,000 units in Arizona. The firm was founded three years ago by The Bascom Group in Irvine, Calif., and Glenn Daiutolo and Jerry Finney, co-managing directors of Scottsdale-based Multifamily Arizona Advisors L.L.C., formed Bascom Arizona Ventures. Its goal is to acquire at least $600 million worth of multi-family properties in Arizona.
The Bethany Group is an Irvine, Calif.,-based full-service real estate and investment company specializing in multi-family properties.
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