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BEDFORD, TX-The Bascom Group, eyeing the resale promise, has scooped up a 263-unit complex beside one that it bought a year ago in an off-market bid to reunite properties that were developed as one. The repositioning plan will get under way with a $7,000 per unit overhaul of the 1980s-era complex.

Bascom’s newest deed is the 32-building Forestwood Apartments at 1611 Oak Creek Lane. Although Bascom doesn’t discuss its prices, comparable class suburban properties have been fetching close to $30,000 per door in recent months.

In scoring the win, the Irvine, CA-based investment group plans to affix the sister property’s name, Oak Creek Apartments, to the entire complex, according to Ryan M. Akins, Bascom’s regional director in Texas. The cross-synergies of a total 19.8-acre tract will bring more playgrounds to the 201-unit Oak Creek at 1800 Oak Creek Lane and the first fitness center to Forestwood.

Bascom bought the neighboring complex from a 15-year owner, Univesco of Plano. “We sent them an offer and they accepted it,” Akins says. “It was a pretty quick deal.”

The just-bought asset sits in front of Oak Creek. Akins says it also has lower rents than its neighbor–for now. The 88%-leased acquisition’s one- and two-bedroom units average 929 sf while rent runs 60 cents per sf or $553 on average. “It’s a challenge when you are behind a property with lower rents,” Akins tells GlobeSt.com. “But, there is upside in the rents after we rehab it. It gives us a lot more firepower in raising rents and scaling back concessions.”

When Bascom bought the 23-building Oak Creek, rents averaged $637 per month for units averaging 957 sf. Akins says Oak Creek, still in the midst of a renovation, has had its rents boosted roughly 10% as a result of the upgrade plan, which is costing $3,000 to $5,000 per unit.

Akins predicts it will take 18 months to two years to complete interior and exterior work on the second complex, also in line for landscaping changes. When the work’s done, he says the class B block will be sized up for resale. The deal puts Bascom in control of a hard corner at Forest Ridge Drive and Oak Creek Lane, with leasing centers on both thoroughfares. “It will be bigger and attractive to more investors as one deal,” he says.

Akins sourced the deal. Bascom’s acquisitions manager Jerry Hess did the due diligence and senior acquisitions analyst James Dargenio managed the closing. Just like with Oak Creek, the equity partner is Washington, DC-based Carlyle Group. Lee Norman with George Smith Partners in Los Angeles arranged financing through Capmark Finance Co., which had Edward Zimbler and Adrienne Miller structuring its terms.

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