SCOTTSDALE, AZ - The $250 million venture by The Bascom Group, LLC and funds managed by Oaktree Capital Management, L.P. has acquired Indigo Creek Apartments, a 408-unit luxury community located in Glendale, Arizona for $40,500,000. Bascom Arizona Ventures, LLC, an affiliate of The Bascom Group, LLC, acquired the asset with $35,000,000 in debt financing from Los Angeles-based portfolio lender Mesa West Capital. Brian Eisendrath, Brandon Smith, and Annie Rice of CBRE arranged the financing for the purchase. Steve Gebing and Cliff David from Marcus & Millichap represented the buyer and seller on this transaction. The onsite property management will be overseen by Arizona based Morrison, Ekre & Bart Management Services (MEB).
"This marks the fifth multifamily acquisition recently closed by our Venture," according to Mark Jacobs, Managing Director with Oaktree Capital Management, L.P. "Oaktree has been very active in the Phoenix market on the office side and are excited to add a high quality apartment project to our portfolio." The Venture has also acquired: The Springs Apartments, a 320-unit garden style community in Corona, California, in June; The Edge at Traverse Point, a 296-unit garden style community in Henderson, Nevada; The Reserve at Heritage Oaks, a 444-unit garden style community in Tallahassee, Florida in July; and the Laurels at Overlook Park in Sandy Springs, Georgia earlier in October.
Built in 1998, Indigo Creek consists of 30 two and three story buildings with three resort-style swimming pools and two spas. Other amenities include a state-of-the-art 24-hour fitness center; controlled access gated entry, common area Wi-Fi, barbecue grills, and detached garages. Indigo Creek is positioned in an excellent northwest Valley location, bordering the Banner Thunderbird Medical Center and Arizona State University West Campus.
Mark Brotherton, Portfolio Manager of Bascom affiliate Bascom Arizona Ventures, comments, "Indigo Creek provided us with an exceptional opportunity to acquire an 'A' quality multifamily property in a prime infill location, well below replacement cost, with significant upside with our value-add program. Indigo Creek is our 12th acquisition since August 2012 in the state of Arizona. 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 Indigo Creek with one of the best amenity packages in the submarket. We look forward to creating value for our new residents."
"Indigo Creek is a well occupied, high-quality multifamily asset in a healthy market," said Mesa West Assistant Vice President Jason Bressler who originated the financing. "The additional value creation opportunities along with Oaktree and Bascom's experience made this an attractive lending opportunity for Mesa West."