PHOENIX-In one of its first 2007 offerings, Bascom Arizona Ventures LLC has introduced 1,417 units to the market. The three-property portfolio, acquired between 2004 and 2006, has been tagged at $88.9 million.
According to investment associate Alon Shnitzer with Marcus & Millichap Real Estate Investment Brokerage Co. in Phoenix, the offering signals a start to a sell-off of Bascom's repositioned local properties. "They're not exiting the market," Shnitzer says. "Their whole plan was to acquire properties, then renovate them and sell them within two to three years. They obviously reached a strong rate of return with their current properties where they felt comfortable introducing them to the market."
Shnitzer tells GlobeSt.com that Bascom plowed more than $10 million into two of the properties. All assets in the offering were built in the 1980s, "solid B products in B-type locations," Shnitzer says. The portfolio is at 89% occupancy, with vacancies attributable to the renovations.
Up for sale are the 374-unit Santan Crossing at 868 S. Arizona Ave. in Chandler; 461-unit Valencia Park at 5104 E. Van Buren St. in Phoenix; and 582-unit Tuscany Palms at 901 S. Country Club Dr. in Mesa. The average unit size is 621 sf; average rent is $593 per month.
The call for offers is Feb. 8. Shnitzer says a closing is anticipated for late April. One-offs will be considered, with private capital and institutional investors making up the prime target market. "Because the majority of the unit mixes on these are one-bedrooms, I'd say no to condo converters," Shnitzer adds.
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