Dealmaker: Bascom, Pacific Life Acquire Two Apartment Communities for $148M

A joint venture between Bascom Arizona Ventures, Scottsdale, Ariz., and Pacific Life Insurance Co., Newport Beach, Calif., acquired two apartment communities totaling 724 units for $148 million–$204,420 per unit.

Located in North Scottsdale’s Kierland planned community, Legend at Kierland and Tradition at Kierland are both within walking distance to the Scottsdale Quarter, Kierland Commons and the Westin Kierland Resort, Spa & Golf.

Quadrant Real Estate Advisors LLC, Atlanta, provided debt financing, which CBRE Vice Chairman Brian Eisendrath, Vice President Brandon Smith and Senior Associate Annie Rice arranged. Lincoln Brokerage Co. President James Reed advised both buyer and seller in the transactions.

Mark-Taylor Cos., Scottsdale, built Legend at Kierland in 1996 and Tradition at Kierland in 1998. Alliance Residential, Phoenix, Ariz., will manage both properties.

The purchases come on the heels of Bascom Arizona Ventures’ recent three-property portfolio acquisition in southern Arizona. The firm recently acquired apartment communities in Tucson and Sierra Vista, Ariz. for $70.2 million by assuming existing HUD loans for all three properties. Marcus & Millichap First Vice President Hamid Panahi represented both buyer and seller in the transactions.

The 288-unit Residence at Summit Vista dates to 2008; Crescent Ridge’s 272 units delivered in two phases in 2001 and 2008. Also built in two phases in 2004 and 2008, Port Royale has 252 units near Army base Fort Huachuca.

Bascom Arizona Ventures Portfolio Manager Mark Brotherton said the portfolio allowed the firm to acquire 812 properties in a “recovering” market, well below replacement cost and with significant value-add upside.