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DALLAS-The Bascom Group and equity partner Cross Atlantic Investors of Austin have acquired the 474-unit Prestonwood Springs apartments through a new fund that the two have established to buy $100 million worth of deals. The partnership’s first asset is a complex of 38 two-story buildings, on just under 16 acres at 5930 Arapaho Rd., that the new owners plan to upgrade in a classic Bascom value-added play.

“It’s a B asset in an A location,” Bascom regional director Ryan Akins says of the Prestonwood Springs property. Terms of the sale were undisclosed, but Akins tells GlobeSt.com that the Bascom-Cross Atlantic partnership plans to spend about $11,000 per unit to upgrade the apartment complex, which it acquired from a partnership of locally based Westdale and GE Capital.

Rents average about $642 per unit at the complex, an average that Bascom figures to increase by approximately 11% through a renovation plan that will include interior unit upgrades, additional amenities and amenity upgrades, landscaping, new roofs, new paint and bringing some down units back on line. The property, which was built in 1978 and consists of one- and two-bedroom units averaging 708 sf, “really just needs a capital infusion,” Akins says.

Bascom bought the complex in an off-market deal, with Tom Warren of Hendricks & Partners representing the buyers. The Bascom team included acquisitions manager Jerry Hess and senior analyst James Dargenio, with Hess managing due diligence and Dargenio managing the closing, as well as Dustin Williamson and Paul Steinhardt from Cross Atlantic.

Holliday Fenoglio Fowler’s John Brownlee and Travis Anderson arranged financing from Capmark. The Capmark team included Adrienne Miller, McCay Major and Ed Zimbler.

Akins tells GlobeSt.com that the new owners can improve the class B Prestonwood property to a B-plus or an A-minus, with additional upside in filling the vacancy at the complex, which has been running at occupancy in the 80% range. The property is in a “fantastic neighborhood,” where most of the occupancies are in the high 90% range, he points out.

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