HOUSTON, TX - The Bascom Group has continued their acquisition spree in Texas acquiring two more apartment communities totaling 602 units. The Spencer Park Row is 390 units located near Katy in west Houston. Tranquility Lakeside is 212 units located in the city of Pearland. These acquisitions mark Bascom's 38th multifamily property closed in Texas.
Clint Duncan and Matt Phillips of CBRE represented the seller in the transaction. Oaktree Real Estate Debt Fund III, LLC provided the debt financing for the acquisition and was arranged by Michael Thompson and Travis Fincher from CBRE. SD Cap will provide construction management and Stonemark Management will provide property management. James D'Argenio and Chang Liusourced and managed the acquisition for Bascom.
The properties were built in 2002 and 2004 with oversized floorplans and 64% of the units are two- and three-bedroom units. Combining this with an abundance of outdoor greenspace, these properties offer the ideal features desired by today's renters. With 52% of the units in original condition, this acquisition presents a tremendous opportunity to physically reposition the assets.
Demand for Houston multifamily accelerated dramatically in the second half of 2021. Houston has absorbed approximately 34,000 units year to date. Houston is expected to have the third largest employment growth in the US from 2021-2026 and is expected to have the largest population gain in the US from 2021-2026.
James D'Argenio, Senior Principal for Bascom, adds "We underwrote over $16 billion in multifamily deals this year in Texas, so it's great to get a few more closed." Jason Hanna, Senior Vice President of Operations, comments "We are excited to acquire assets that were built over 15 years ago but offer characteristics, like large floorplans and open greenspace, that are desired by today's renters. We can elevate the interior design to match current modern standards and offer a unique rental product for the submarket."
Source: Bascom Group