The Bascom Group has acquired Sierra Charles Apartments in the Tucson metro area. Bascom purchased Sierra Charles, a 196-unit garden-style community built in 1985, for $11,600,000, or $59,164 per unit. Financing for the acquisition was provided by MF1 Capital and was arranged by Brian Eisendrath and Cameron Chalfant at CBRE Capital Markets. Property management will be provided by MEB Management Services and construction management will be provided by CAPgro Construction Management.
Bascom SVP President and Principal of Acquisitions Jim Singleton said “Sierra Charles is a well located, well-maintained asset in a quiet neighborhood with access to entertainment, shopping, dining, and major employment centers. The attractive going in yield at the property coupled with favorable financing and value-add opportunity made the acquisition particularly desirable for Bascom and our investors. We look forward to executing on Bascom’s operational strengths while building our portfolio in a rapidly growing Southwestern market.”
Bascom’s Senior Principal of Operations Paul Diamond added, “While Sierra Charles has been well-maintained by current ownership, the property is extremely well-positioned for new ownership to drive appreciation through institutional management and the execution of strategic renovations. Current ownership has performed moderate improvements, but the property has not been addressed with a comprehensive renovation plan in over 20 years.
Bascom will renovate unit interiors with new countertops and appliances, wood plank flooring, new baseboards, cabinetry improvements, new fixtures and lighting, and a new two-tone paint scheme. In addition, Bascom will be improving amenities with a pool deck expansion, dog park addition, and leasing office re-design.”
Bascom and its affiliates have acquired and operated 51 apartment communities totaling 16,263 units in the Arizona market. Over the past year, Bascom has completed over $436.8 million in multifamily transactions.
Bascom is a private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate related investments and operating companies. Bascom sources value-added and distressed properties including many through foreclosure, bankruptcy, or short sales and repositions them by adding extensive capital improvements, improving revenue, and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom, founded by principals Jerry Fink, David Kim, and Derek Chen, is one of the most active and seasoned buyers and operators of apartment communities in the U.S. Since 1996, Bascom has completed over $21.7 billion in multifamily and commercial value-added transactions including more than 173,000 units.
Bascom has ranked among the top 50 multifamily owners in the U.S. Bascom’s subsidiaries and joint ventures include Bascom Value Added Apartment Investors, Shubin Nadal Associates, Spirit Bascom Ventures, REDA Bascom Ventures, Bascom Northwest Ventures, Bascom Arizona Ventures, Harbor Associates, Village Partners Ventures, and the Realm Group. Bascom’s subsidiaries also include Premier Workspaces, one of the largest privately held coworking companies in the U.S.