Sale price garners $165,509 per unit at multifamily property in Arcadia area

PHOENIX, AZ – Bascom Arizona Ventures (Bascom Group) completed the $71.5 million sale of Arcadia Cove Apartments in Phoenix, commanding $165,509 per unit.

Arcadia Cove, built in 1996, is located at 2252 N. 44^th St., and comprises 432 units. Bascom Arizona Ventures purchased the property in June 2013 for $40.725 million ($94,270 per unit).

Bascom made a substantial financial investment in renovations at Arcadia Cove. Exterior upgrades were performed on the pools and spas. Misters were added to the pool area, as were barbecue pits, outdoor television monitors and Wi-Fi connection.

Upgrades featured a fitness room, an Internet café, and a clubhouse with iPads stations. Interior upgrades included two-tone paint, new cabinetry, granite countertops, energy-saving stainless steel appliance packages, modern light fixtures, vinyl plank flooring, and ceilings fans. The amenities brought the community up to modern design.

MEB Management Services has served as Bascom Arizona’s management company for more than 10 years. Arcadia Cove is one of the multifamily projects for which MEB has provided property management.

“The management and leasing team at Arcadia Cove was outstanding,” said Mark Schilling, Senior Vice President of Operations and Principal of MEB Management Services. “Vice President of Operations Dalia Bureker and her team did a great job the past four years providing exemplary property management service.”

The buyer was BH Equities of Des Moines, Iowa. Bascom was represented by Cindy and Brad Cooke of Colliers International.

Multifamily Portfolio Sells for $46 Million

Updated: 3/1/2017
Tucson, Arizona — New York-based, Dasmen Residential (Michael I Katz, CEO) purchased a 1,166-unit portfolio in Tucson from Omninet Capital of California for $46 million ($39,451 per unit). The transaction marks the buyer’s entry into Tucson and its first acquisition west of the Mississippi.

“Our goal is to bring these four apartment communities to the next level in terms of interior upgrades, as well as commons area improvements,” says Michael Katz, CEO of Dasmen Residential, LLC. “Historically, we purchase assets of similar vintage and upgrade them with high end finishes that rival any new construction deal such as Quartz Countertops and Stainless Steel Appliances. With numerous development projects in the works across the city, along with job growth showing very positive signs, DASMEN feels that Tucson is on the rise. We feel that its economy is growing at a very strong and healthy pace. With its hands-on management approach, DASMEN will look to offer the residents of all four communities impeccable service and to do our part in ensuring that Tucson continues to become a great and successful city.”

Omninet Capital acquired the portfolio in August 2014 for $34.65 million ($29,717 per unit) and at that time it was the largest multifamily units and sale price sold in Tucson multifamily since 2010. This is no longer the situation in 2017.

Cindy and Brad Cooke with the Greater Phoenix office of Colliers International brokered both transactions on behalf of the sellers.

“The timing for Tucson market is highly opportunistic for investors,” said Brad Cooke, senior vice president of Colliers International in Greater Phoenix.   “It is experiencing strong job growth and looks to be headed toward even stronger economic performance in coming years. With new businesses and development projects, the job market is seeing a rise in the high-wage job sectors, nationally recognizable businesses bidding for entry to the market. Healthy population growth will continue to support tenant demand for apartment properties.”

“We’re pleased to see the multifamily market going so well in Tucson,” said senior executive president Cindy Cooke, “the job growth over the past year and projections for 2017 made this a good deal for both buyer and seller.”

All assets were built between 1973 and 1984. They include:

– Sedona Springs, 373 N. Wilmot Road (408-units)
– Sienna Ridge, 5353 E. 22nd St.(305-units)
– Summit Ridge, 1252 S. Craycroft Road (360-units)
– Verrano Park, 6850 E. Golf Links Road (93-units)

Dasmen Residential LLC, a privately held real estate investment firm that owns and operates multifamily properties in major cities throughout the United States, makes opportunistic investments in growth markets and employs a range of strategies to create value and sustain long term asset appreciation. The company seeks to continue exceeding its goal of providing outstanding risk adjusted returns to its partners while providing the best possible living experience in its communities.

The portfolio was over 95% occupied at time of sale. Properties were being managed by MEB Management Services by seller and will continue management for new owner. MEB can be contacted at 520.620.1640.

For more information, the Cooke Multifamily Investment Team and Cindy and Brad Cooke can be reached at 602.222.5000.

See RED Comps #1922, #1923, #1924 and #1925 for prior transactions and RED Comp #4571.

[mepr-show rules=”58038″]Portfolio closed 2/14/2017. Document # 2017-0450572. Prices were split evenly over the four properties totaling $46 million with $800, total down payment.[/mepr-show]

Tucson showing strong signs of market recovery

Phoenix, AZ — Colliers International in Greater Phoenix has negotiated the sale of a portfolio containing five apartment communities in Tucson.  The properties were the first Arizona acquisition for a Colorado-based investment group and commanded a sale price of $47.5 million ($47,311 per unit) in a bulk portfolio sale.

Hamilton Zanze of San Francisco (Mark Hamilton, CEO) sold the portfolio to Monarch Investment & Management Group, LLC of Franktown, CO (Andy Newell, CEO).  Cindy Cooke and Brad Cooke of Colliers International in Greater Phoenix served as the exclusive sales agents for the portfolio.

“This portfolio was a great investment due to the strong cash flow and overall condition of the properties,” says Cindy Cooke, senior executive vice president with Colliers International in Greater Phoenix.  “The economic recovery in Tucson follows the Phoenix economy.  Phoenix has realized incredible appreciation in the recent years, so Tucson investors are well positioned to benefit from similar trends.”

Greater Tucson added approximately 13,000 jobs in the last 12 months and more than 240 businesses have opened in Downtown Tucson since 2008.  Mid-year 2016 statistics report Tucson’s multifamily market with a 6.8% vacancy.  Rental rates have increased 5% overall in the past 12 months in Tucson.  However certain properties have seen recent rent increases of 11-13%, and rates are expected to continue to climb and reach the peak rents of 2008 and higher.

The Tucson portfolio included:
– Hampton Park, a 160-unit community located at 8600 E. Old Spanish Trail in Tucson
– San Mateo, a 254-unit community at 2800 S. Mission Rd. in Tucson
– Solano Springs, a 152-unit community at 6340 S. Santa Clara Ave. in Tucson
– Lakeside Apartments, a 310-unit community at 8250 E. Golf Links Rd. in Tucson
– Highland Apartments, a 128-unit community at 555 N. 7th St. in Sierra Vista

Each of these properties was constructed between 1973 and 1985.  The communities contain 1,004 units totaling 686,314 square feet. The portfolio averaged 94% occupancy at the time of sale.