Local Private-Equity Firm Gets Vegas MF

IRVINE, CA—Locally based private-equity firm the Bascom Group has purchased Chapel Hill, a class-A, garden-style apartment community at 9620 W. Russell Rd. in Las Vegas, for $22.5 million or $101,216 per unit from an undisclosed seller. The transaction is an example of firms outside the Las Vegas area taking advantage of a recovering market.

Chris Bentley and Melissa Salas of ARA brokered the sale. Debt financing was provided by Comerica Bank and arranged by Brian Eisendrath and Troy Tegeler of CBRE Capital Markets.

GlobeSt.com was unable to reach Bascom before deadline to discuss the pros and cons of firms owning multifamily properties outside of where the landlords are based, as well as whether Bascom plans to purchase any Orange County assets in the near future. However, as GlobeSt.com reported in February, Bascom recently purchased Huntington Villas Apts., a 114-unit multifamily community at 16171 Springdale St. in Huntington Beach, for $19 million or $166,667 per unit. The asset is considered an unusual find in this particular submarket.

In addition, as GlobeSt.com also reported in February, Bascom has closed its second fully discretionary real estate investment fund, Bascom Value Added Apartment Investors II LLC. The fund provides up to $300 million of buying power, with leverage, for value-added multifamily acquisitions across an 11-state region. Bascom tells GlobeSt.com that the states in this region include Arizona, California, Colorado, Hawaii, Nevada, Oregon, Washington, Utah, Texas, Georgia and Florida.

Chapel Hill, built in 2001, consists of 18 two-story multifamily buildings with a clubhouse and pool. Set across 14.7 acres in the Southwest Las Vegas submarket, the property contains 39% one-bedroom, 53% two-bedroom and 8% three-bedroom units with fully equipped kitchens, balconies or patios, 9-ft. ceilings, full-size washers and dryers and walk-in closets.

Located in close proximity to numerous job centers and growth areas, including Southern Hills Hospital, the Shops at Summerlin and the CBD, Chapel Hill is also close to Highway 215 Beltway and I-15 and is within a half-mile of the master-planned community of Summerlin and several highly rated schools, including Bishop Gorman High School.

According to Scott McClave, principal for Bascom, “We are excited to continue extending our presence into Southern Nevada. This is our third acquisition in Las Vegas in the last seven months. Chapel Hill represents a great opportunity to purchase a well-built, high-quality property in a strengthening market.”

Tim Whiting, VP of portfolio operations for Bascom, adds that the market has suffered “the largest decline in net effective rents for any major metro market in the western US since the peak in 2007. We are beginning to see a strong recovery, especially in the better submarkets in Las Vegas.”