$250 Million Bascom/Oaktree Venture Closes 408-Unit Luxury Apartment Community in Glendale, Arizona

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Nov 07, 2014, 08:30 ET

SCOTTSDALE, Ariz., Nov. 7, 2014 /PRNewswire/ -- The $250 million venture by The Bascom Group, LLC and funds managed by Oaktree Capital Management, L.P. ("Venture") 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 12^th 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."

About Bascom:
Bascom is a private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate related investments and operating companies. Bascom sources value-added and distressed properties including many, through foreclosure, bankruptcy, or short sales and repositions them by adding extensive capital improvements, improving revenue, and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom has completed over $8.6 billion in multi-family and commercial value-added transactions since 1996 including more than 250 multifamily properties containing over 68,000 units. Bascom currently ranks among the top 50 multifamily owners in the US. Bascom's subsidiaries and joint ventures include the Southern California Industrial Fund, Rushmore Properties, Real Estate Development Associates, Shubin Nadal Associates, Spirit Investors, Bascom Northwest Ventures, Bascom Arizona Ventures, and the Realm Group. Bascom's subsidiaries also include Premier Business Centers; the largest privately held executive suite company in the US. For additional information, please visit Bascom's website at http://www.bascomgroup.com/.

About Oaktree:
Oaktree is a leader among global investment managers specializing in alternative investments, with $93.2 billion in assets under management as of September 30, 2014. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 17 cities worldwide. For additional information, please visit Oaktree's website at http://www.oaktreecapital.com/.

About Mesa West Capital, LLC:
Los Angeles-based Mesa West Capital (www.mesawestcapital.com) is a privately held portfolio lender with a current capital base of approximately $3.5 billion. Mesa West has an established debt platform that continues to provide flexible and reliable capital for real estate acquisitions, re-financings and re-capitalizations on office, retail, industrial, multifamily and hotels in the United States.

For more information, please contact Mark Brotherton or Bill Wright at Email.

Bascom Arizona Ventures, LLC
Scottsdale, Arizona
Tel: 480.315.1200

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Photo - http://photos.prnewswire.com/prnh/20141106/157142

SOURCE The Bascom Group