Bascom Arizona Ventures LLC purchased a five-property apartment portfolio consisting of 1,348 units in Tucson, Ariz., for approximately $49.5 million.
The seller’s identity was not disclosed.
The properties include the 306-unit Montierra Village Apartment Community, located at 5353 East 22nd St.; the 314-unit Meridian East Apartment Community, located at 8110 Speedway Blvd.; the 275-unit La Hacienda Apartment Community, located at 6161 East Pima Road; the 93-unit Ria Nova Apartment Community, located at 6850 East Golf Links Road; and the 360-unit Casa Alegre Apartment Community, located at 1252 South Craycroft Road.
The properties range in age from 19 to 31 years. The average size of the portfolio is 270 units, with predominately one- and two-bedroom units. Property features include swimming pools, clubhouses, fitness centers and playgrounds. Bascom will spend nearly $12.9 million, an average of approximately $9,532 per unit, on renovations, including exterior paint, roofs, asphalt, ceiling fans, lighting, cabinetry, flooring, landscaping, etc.
Jerry Finney, one of Bascom’s Arizona partners overseeing acquisitions, said, “Clearly the Tucson multifamily market has regained its strength over the past year. Vacancy rates and concessions have been on the decline for the past two and a half years resulting in a dramatic rise in net-effective rents. Additionally, the recent decline in multifamily construction, strong job growth, and increasing home mortgage rates bode well for apartment demand. The affordability we have seen in single-family housing over the last few years is disappearing; and we expect to see strong increases in rental rates over the next couple of years. In addition to improving market fundamentals, we see the opportunity for these properties to benefit from our planned renovations resulting in improved rental rates and occupancies.”
Bascom Arizona Ventures LLC is a joint venture between Irvine, Calif.-based The Bascom Group and Scottsdale, Ariz.-based Multifamily Advisors LLC.