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TUCSON-Marking its first deal this year, Bascom Arizona Ventures LLC has purchased the 410-unit Fountain Village. The Scottsdale-based buyer, paying $20.5 million, plans an additional investment of $10,000 per door for upgrades.

According to Hendricks & Partners’ Art Wadlund who brokered the transaction, Bascom beat out multiple bidders for the 93%-occupied complex at 1345 S. Kolb Rd. Although Bascom didn’t make the highest offer, the certainty of closing won the nod from Bridge Partners of Murray, UT.

“Bascom assumed an existing loan through Prudential Life Insurance,” Wadlund tells GlobeSt.com. The fixed-rate loan of $11.5 million expires in 2009. It has a 4.86% interest rate.

For Bascom, acquiring the class B complex was a no-brainer because its MO is to buy ‘em, renovate ‘em and sell them. “We’ll do some renovations, some interior work, landscape, asphalt and a lot of additional cosmetic stuff,” says Bascom Arizona’s manager Jerry Finney. He adds that there’s room for rent increases as well, especially among the 160 townhouses in the complex.

Built in two phases in 1972 and 1979, Fountain Hills is the seller’s next-to-last asset in the city. The 224-unit Sienna Springs at 2650 N. Oracle Rd. is on the market for $8.7 million. Wadlund says the partnership simply has reached the end of its hold for both properties.

Fountain Village has 54 two- and three-story buildings situated on close to 18 acres. The unit mix is made up of studio, one-, two- and three-bedroom apartments, measuring from 470 sf to 1,050 sf. The monthly rents go from $449 to $805.

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