TUCSON, AZ - The $250 million venture by The Bascom Group and funds managed by Oaktree Capital Management 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.