IRVINE, CA - The Bascom Group, LLC, in partnership with the Carlyle Group, has acquired an 840-unit apartment portfolio in the Denver Metro region. The portfolio consists of Fairways at Lowry, a 450-unit community in Aurora, Colorado, acquired for $16,650,000 ($37,000 per unit or $70.77 per square foot) and Village at Coronado, a 390-unit community in Thornton, Colorado, acquired for $15,000,000 ($38,462 per unit or $54.27 per square foot). The portfolio was an all-cash sale and closed on April 18, 2011. The acquisition for Bascom was managed by Scott McClave and Jeff Fuller. Both properties were subsequently refinanced with new loans through Freddie Mac closing June 6, 2011. This is on the heels of a 536-unit, three-property refinance the partnership completed with Freddie Mac in May, 2011. Debt financing for all five properties was arranged by Brian Eisendrath and Justin Arquilla from CB Richard Ellis. The onsite property management will be overseen by Apartment Management Consultants ("AMC").
The Fairways at Lowry covers over 14.53 acres and consists of one- and two-bedroom units averaging 523 square feet. Constructed in 1972, the property's amenities include: a full-service leasing office and clubhouse, well-appointed fitness center, movie theater, swimming pool, soccer pitch, children's playground, barbecue centers, internet cafe, and learning center. Unit amenities include efficient floor plans; upgraded flooring finishes, new appliances, air conditioning, two-tone paint finishes, and brushed nickel fixtures. The property fronts the 72-hole Tom Doak-designed Golf Course, which is part of the Lowry Redevelopment, a 1,866 master planned community being developed on the former Lowry Air Force Base. Additionally, the property is only two miles from the new Fitzsimons Life Science Redevelopment District, which is home to the University of Colorado Medical Center and Children's Hospital, the Colorado Science & Technology Park, and The Colorado State Veterans' Center. Scott McClave of the Bascom Group commented, "This marks the sixth acquisition in the past year of a distressed property that was either in receivership, foreclosure, or loan that was in the default."
Villages at Coronado is spread over 11.68 acres and consists of studios, one- and two-bedroom units with an average size of 709 sf. The property was constructed in 1973 and has an extensive common area amenity package including: a freestanding leasing office and clubhouse, children's playground, fitness center, basketball court, dog park, and sport court. Unit interiors feature fully equipped kitchens, two-toned paint, upgraded cabinet faces, hardware, appliances and floor coverings. Coronado is located near the intersection of the I-25 and I-76, just ten minutes north of the I-70 Industrial corridor, Fitzsimmons Life Science District, Stapleton Redevelopment, Downtown Denver, Boulder and Denver International Airport (DIA), Margaret W. Carpenter Recreation Center, and the Thornton Community Center. The overall central location of the Village at Coronado provides residents with excellent access to schools, major employment centers, retail, parks, recreation centers, and public transportation. "The lower-quality properties have suffered the most distress in this apartment cycle as renters have upgraded to higher quality properties. The largest pipeline of foreclosures are in the lower-quality properties due to deteriorating rents, higher vacancies, and increases in operating costs," stated Jeff Fuller of Bascom.
Bascom was established in 1996 as a value-added multifamily operating company that offers investors access to the acquisition-related and operational expertise of the Bascom professionals. Headquartered in Irvine, California, and with additional offices in Phoenix, Arizona, and Dallas, Texas, Bascom has extensive experience in identifying underperforming multifamily properties, including properties in foreclosure, bankruptcy, and receivership and improving operating performance through property upgrades and active asset management and leasing. Bascom has completed multifamily property transactions totaling $6.3 billion since its formation in 1996. This total transaction volume includes the acquisition of 206 multifamily communities, comprising 55,288 units, for an aggregate acquisition cost of $4.2 billion and the sale of 96 multifamily communities, comprising 21,569 units, for an aggregate sales price of $2.1 billion. Bascom currently owns and operates a portfolio of 90 multifamily communities, totaling 27,468 units, across nine states.