Oaktree and Bascom buy Tucson luxury apartment community

Oaktree Capital Management LP and The Bascom Group LLC have acquired Tucson, Arizona-based Springs at Continental Ranch Apartments, a 196-unit luxury community. No financial terms were disclosed. ACORE Capital provided the debt funding for the transaction.

PRESS RELEASE

TUCSON, Ariz., Nov. 2, 2016 /PRNewswire/ — The $250 million venture by The Bascom Group, LLC and funds managed by Oaktree Capital Management, L.P. (“Venture”) has acquired Springs at Continental Ranch Apartments, a 196-unit luxury community located in Tucson, Arizona. ACORE Capital provided debt financing, which was arranged by Brian Eisendrath, Brandon Smith, and Annie Rice of CBRE. Art Wadlund & Clint Wadlund of Berkadia represented the buyer and seller on this transaction. The onsite property management will be overseen by Arizona based Morrison, Ekre & Bart Management Services (MEB).

Built in 1999, Springs at Continental Ranch consists of 19 two-story buildings with two resort-style swimming pools and a relaxing spa. Other amenities include a state-of-the-art 24-hour fitness center, controlled access gated entry, common area Wi-Fi, barbecue grills, theatre room, and private garages. Springs at Continental Ranch is positioned in an excellent northwest Tucson location, just west of Interstate 10.

Mark Brotherton, Portfolio Manager of Bascom affiliate Bascom Arizona Ventures, comments, “Springs at Continental Ranch provided us with an exceptional opportunity to acquire another ‘A’ quality multifamily property in a highly desirable location, well below replacement cost, with significant upside with our value-add program. Springs at Continental Ranch is our 15th acquisition since August 2012 in the state of Arizona, and our second in Northwest Tucson in the last 30 days. We are very excited about our newest acquisition and look forward to commencing our value-add program as soon as possible.”

Bill Wright, Asset Manager of Bascom affiliate Bascom Arizona Ventures, adds, “Bascom will recapitalize the property with exterior and interior renovations which will equip Springs at Continental Ranch with one of the best amenity packages in the submarket. We look forward to creating value for our new residents.”

“As a smaller market, Tucson is sometimes overlooked, but the jobs-to-permits ratio is amongst the highest in the nation with more than three jobs created for every housing unit built. We believe Tucson is poised for meaningful rent gains as a result of strong, high-quality job growth coupled with a limited new supply pipeline,” said Mark Jacobs, Managing Director at Oaktree.

About Bascom: The Bascom Group, LLC is a private equity firm specializing in value-added multifamily, commercial, 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, increasing 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. Bascom has completed over $12 billion in multifamily and commercial value-added transactions since 1996 including more than 299 multifamily properties containing over 79,000 units. Bascom has ranked among the top 50 multifamily owners in the U.S. Bascom’s subsidiaries and joint ventures include the Southern California Industrial Fund, Rushmore Properties, Bascom Portfolio Advisors, Shubin Nadal Associates, Spirit Bascom Ventures, REDA Bascom Ventures, MHF RM Holdings, Bascom Northwest Ventures, Bascom Arizona Ventures, Harbor Associates, Village Partner Ventures, and the Realm Group. Bascom’s subsidiaries also include Premier Business Centers, the largest privately held executive suite company in the U.S. For additional information, please visit www.bascomgroup.com.

About Oaktree: Oaktree is a leader among global investment managers specializing in alternative investments, with $100 billion in assets under management as of September 30, 2016. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.