Bascom Arizona Venture Secures The Retreat at Speedway for $53.4M in Tucson Market

In a significant transaction for the multifamily apartment industry, Bascom Arizona Venture (BAZV), linked to the private equity powerhouse The Bascom Group, has finalized the purchase of The Retreat at Speedway in Tucson, Arizona, for $53.4 million. This strategic investment showcases Bascom's proficiency in recognizing valuable assets as they secured the property at approximately $175,658 per unit through their current fund, Bascom Value Added Apartment Investors VI, LLC.

The Retreat at Speedway, constructed in 2001, is a 304-unit multifamily property distinguished by its location along Speedway Boulevard with the Catalina Mountains offering a stunning backdrop. The property's selection of one- and two-bedroom floorplans, coupled with an impressive amenity package that includes a swimming pool, spa, clubhouse, and fitness center, positions it as a coveted residence in the Tucson area.

The purchase signals BAZV's discerning acquisition strategy, as it is their first since February 2020. "BAZV has remained disciplined and committed to sourcing the right opportunity to align with their business plan," remarks Joe Daiutolo, Acquisitions Manager for BAZV. He further explains, "This acquisition reflects our commitment to reinvesting in the community through a thorough renovation program designed to enhance the day-to-day resident experience while unlocking the property's long-term potential."

Financing for the acquisition was facilitated by BrightSpire Capital Acquisitions with the debt arrangement efforts of Brian Eisendrath, Cameron Chalfant, Jake Vitta, and Jesse Zarouk of Institutional Property Advisors (IPA). The advisement for the buyer and seller was conducted by IPA's Steve Gebing, Cliff David, Hamid Panahi, and Clint Wadlund, clearly indicating the high level of industry expertise involved in the transaction. Bryten Real Estate Partners, an Arizona-based property manager, has been appointed to manage the property post-acquisition.

Further showcasing Bascom's investment strategy, Fund VI, under Bascom's sponsorship, presents a new securities offering under Rule 506(c) of the Securities Act of 1933, aiming to raise roughly an additional $70 million in equity. Fund VI's primary objectives are acquiring and repositioning apartment communities across the U.S.

Chad Sanderson, Fund VI Manager, delineates the foresight and strategy of the fund, stating, "Fund VI is focused on building a diversified multifamily portfolio that emphasizes capital preservation, long-term value creation, and consistent cash flow." He observes a favorable investment climate with the recalibration of property values and asserts the capability and readiness to capitalize on such opportunities.

In corroboration, Joe Ferguson, Vice President, adds, "The Retreat at Speedway is a good illustration of this dynamic. We are acquiring a well-located, institutional-quality property at a strong going-in yield, with clear value-add upside and a cost basis meaningfully below replacement cost, reflecting the types of attractive, risk-adjusted opportunities created by today's pricing reset."

This significant acquisition by BAZV showcases a well-timed strategic move within the multifamily industry, aiming to fortify investments by harnessing the current market conditions to enhance communities and drive economic growth.