(Read more on the multifamily market.)

|

DALLAS-The Bascom Group and equity partner Cross AtlanticInvestors of Austin have acquired the 474-unit Prestonwood Springsapartments through a new fund that the two have established to buy$100 million worth of deals. The partnership's first asset is acomplex of 38 two-story buildings, on just under 16 acres at 5930Arapaho Rd., that the new owners plan to upgrade in a classicBascom value-added play.

|

"It's a B asset in an A location," Bascom regional director RyanAkins says of the Prestonwood Springs property. Terms of the salewere undisclosed, but Akins tells GlobeSt.com that the Bascom-CrossAtlantic partnership plans to spend about $11,000 per unit toupgrade the apartment complex, which it acquired from a partnershipof locally based Westdale and GE Capital.

|

Rents average about $642 per unit at the complex, an averagethat Bascom figures to increase by approximately 11% through arenovation plan that will include interior unit upgrades,additional amenities and amenity upgrades, landscaping, new roofs,new paint and bringing some down units back on line. The property,which was built in 1978 and consists of one- and two-bedroom unitsaveraging 708 sf, "really just needs a capital infusion," Akinssays.

|

Bascom bought the complex in an off-market deal, with Tom Warrenof Hendricks & Partners representing the buyers. The Bascomteam included acquisitions manager Jerry Hess and senior analystJames Dargenio, with Hess managing due diligence and Dargeniomanaging the closing, as well as Dustin Williamson and PaulSteinhardt from Cross Atlantic.

|

Holliday Fenoglio Fowler's John Brownlee and Travis Andersonarranged financing from Capmark. The Capmark team included AdrienneMiller, McCay Major and Ed Zimbler.

|

Akins tells GlobeSt.com that the new owners can improve theclass B Prestonwood property to a B-plus or an A-minus, withadditional upside in filling the vacancy at the complex, which hasbeen running at occupancy in the 80% range. The property is in a"fantastic neighborhood," where most of the occupancies are in thehigh 90% range, he points out.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.