RENO, NV - The Bascom Group has acquired Sierra Point Apartments in the Reno, Nevada metro area. Bascom purchased Sierra Point, a 147-unit garden-style multifamily community for $31,000,000, or $210,884 per unit, in an off-market transaction.
The property, built in 1996 & 1998, consists of 84% two-bedroom floorplans. Financing for the acquisition was provided by LoanCore and was arranged by Charles Halladay, Jamie Kline, and Annie Rice at JLL Capital Markets. Property management will be provided by AMC Management Services and construction management will be provided by SD Cap Construction Management.
Reno is the third largest city in Nevada and enjoys a central location to several major western U.S. cities including San Francisco, Portland, Salt Lake City, Las Vegas, and Los Angeles. Known as "The Biggest Little City in the World", Reno has enjoyed a robust population and economic expansion in recent years due to its affordability, pro-business attitude, and high-quality of life. In 2020, Reno was ranked #1 in America's Best Small Cities for its natural assets and growing infrastructure. Since 2011, Reno metro's population increased 26.9%, nearly triple the national growth of 6.7%. Driving migration to the region are residents fleeing high cost-of-living markets like the Bay Area and Los Angeles. In addition, the presence of tech in Reno has increased dramatically, highlighted by Google's recent $600M data center investment and Tesla's Gigafactory increasing its employment projections from 6,500 people to 10,000.
Bascom's Senior Vice President and Principal of Acquisitions, Jim Singleton, stated "Sierra Point is a well-located asset, positioned adjacent to the $200 million Hug High School Development that is planned to open this August". Sierra Point offers residents convenient access to entertainment, shopping, dining, and major employment centers throughout the Reno MSA. The value-add upside of Sierra Point, coupled with its great location along the path of development in Reno, make the acquisition particularly desirable for Bascom and our investors. Singleton continues, "We look forward to executing on Bascom's operational strengths while building our portfolio in a rapidly growing Northern Nevada market."
Bascom's Senior Principal of Operations, Jason Hanna, added, "Sierra Point has been well-maintained by current ownership, and the asset is primed for synergies with Bascom's institutional management style, as well as the execution of our strategic renovation plan. Current ownership has performed limited improvements, and the property has not been addressed with a comprehensive renovation plan since it was developed in the late 1990's. Bascom will renovate unit interiors with new countertops and appliances, wood plank flooring, backsplashes, new baseboards, cabinetry improvements, new fixtures and lighting, and a new two-tone paint scheme. In addition, Bascom will be adding a dog park, tot lot, and outdoor barbeque and recreational area."
Partnering with institutional and private capital, Bascom has been one of the most active apartment buyers in Nevadasince its first acquisition in 2013. Following the 15-property portfolio acquisition from Camden Property Trust in 2016, Bascom and its affiliates have acquired and operated 34 apartment communities in the Nevada market totaling 9,614 units totaling over $1.38B in total capitalization. Prior to the pandemic, Bascom sold 19 properties totaling 5,888 units and over $1.0 billion in sales in Las Vegas. Bascom recently acquired the ReNew at Decatur, a 1988 built, 216-unit multifamily property in Las Vegas, Nevada for $49,600,000, or $229,630 per unit. Over the past year, Bascom has completed over $1.43 billion in multifamily transactions across the country.