TALLAHASSEE, FL - The $250 million venture by Bascom and funds managed by Oaktree Capital Management, L.P. has acquired The Reserve at Heritage Oaks, a 444-unit apartment community located at 3909 Reserve Drive Tallahassee, Florida. The sale closed on July 31, 2014. CIT Bank provided debt financing to acquire the property. The debt financing was sourced by Andrew Feinberg, David Harte, and Marc Schulder of Ackman-Ziff. Matt Wilcox of ARA represented the seller on the transaction.
This is the third multifamily acquisition recently closed by the Venture. The Venture has also acquired The Springs Apartments, a 320-unit garden style community in Corona, California, on June 24, 2014 and The Edge at Traverse Point, a 296-unit garden style community in Henderson, Nevada on July 24, 2014.
The Property is located in the bourgeoning southeast submarket of Tallahassee. Built in two phases between 2000 and 2005, the community features oversized units averaging 1,182 sf in a well-designed mix of 1, 2, and 3 bedroom layouts. All units include French doors to private balconies or solariums, walk-in closets, in suite washer/dryers, dishwashers and disposals. The luxury community is situated within a low density, maturely landscaped 65 acre site with a dedicated jogging trail and a full host of modern amenities including 2 club houses, 2 resort style pools with hot tubs, a fitness center, multiple playgrounds, a tennis court, and detached garages.
The Venture will commence a full value-add improvement program to upgrade all of the unit interiors with stainless steel appliances, laminate hardwood floors, and contemporary urban finishes and fixtures. The program will also include a complete overhaul of the amenity package that will include converting the second clubhouse to a dedicated fitness center, creating a resort style pool experience and reconcepting the main club room to better engage its residents through relevant and functional design. Post renovation, the property will be better positioned to compete directly with the new Class A product in the marketplace.
Ian Hafner, a principal of Bascom affiliate Spirit Bascom Ventures, explains, "Heritage Oaks is a well located, well maintained asset that could benefit from value-added enhancements. We plan to make upgrades to the common areas and interiors to make it best-in-class in its submarket." Scott Zwilling of Spirit Bascom Ventures, adds, "This marks the third recent Spirit Bascom Ventures acquisition. We continue to see many attractive value-add opportunities along the East Coast and expect to close a number of other acquisitions this year."