Repositioning Pro Claims 437-Unit Neighbors

Arbor East and Azalea Court will be re-branded, but will continue to be run as one property, an 8.71-acre block at 1615 and 1721 John West Rd., respectively. "The deal is a strong value-added play that will benefit from a new middle school being built around the corner and the retail being built at Bucker and Interstate 30," says Jerry Hess, senior analyst in Dallas for the Irvine, CA-based Bascom.

Bascom's regional director Ryan M. Akins says the 75%-leased complexes, which have yet to be renamed, will be retooled in keeping with its MO for other value-add plays, with the final goal to redo and raise rents. He tells GlobeSt.com that the existing in-place average rent, $496, most likely will be hiked 15% after investing another $5,000 per unit into upgrades. The 28 buildings have units ranging from 465 sf for one-bedrooms to 1,012-sf, three-bedroom townhouses.

The complexes' subsidized housing component is locked in place, according to Akins, who readily expects the repositioning plan will affect occupancy for the short term. "There will be some turnover," he says. Locally based Greystar Management Co. is moving in to oversee Bascom's newest acquisition. Commercial Services Building of Carrollton is tasked with the overhaul, which is poised to get under way.

Akins says the win emerged from a best and final in a CB Richard Ellis-guided market run for the Washington, DC-based NHP Foundation, asset manager for Asmara Affordable Housing. CBRE's Dirk Goris was the 10-year owner's listing broker. The Bascom team included analyst James Dargenio.

All Akins will say about the price is the mid-1980s-era property came at a discount to replacement. He envisions it as a two- to three-year hold, allowing time for the distressed neighborhood to join in the multifamily market's rebound. And the competitive advantage, he adds, is its location near an Interstate 30 ramp and a bus stop at its front door.