Dealmaker: Bascom, Artemis Acquire Calif. Apartment for $35M
A joint venture between Bascom Group, Irvine, Calif., and investment manager Artemis Real Estate Partners, Chevy Chase, Md., acquired Phoenix Townhomes in Fresno, Calif., for $35 million.
The condominium-style apartment community at 5355 North Valentine Avenue in Fresno dates to 2004.
Sperry Van Ness/MJM and Assocs. Owner Mark Mimms brokered the transaction.
Bascom Senior Vice President and Principal Jim Singleton said the 248-unit rental property has good access to employment centers, schools and several retail and entertainment options. “The Fresno market continues its healthy growth led by strong employer investment by companies seeking to take advantage of Fresno’s low cost of living and relative affordability, with several ongoing and planned development projects estimated to bring over 3,600 jobs to the area,” he said. “These new developments and the quality of life offered by Fresno continue to attract a growing number of young professionals and families relocating to the area.”
Lee Nguyen, Senior Vice President of Portfolio Operations with Bascom said the northern Fresno submarket has seen very little new multifamily construction over the past several years despite the strong demographic fundamentals.
Fresno is home to some of the largest employers in California’s central valley, including the Internal Revenue Service, Saint Agnes Medical Center, California State University–Fresno and Kaiser Permanente.
In August Bascom completed a $235 million refinance of an 11-property multifamily portfolio spanning five states. Most of the new loans were interest-only with spreads ranging from 180 basis points to 200 basis points over LIBOR and interest-only periods up to 36 months.
The refinanced properties included The Square Apartments in Downey, Calif., Camden Village Apartments in Fremont, Calif., Del Flora Apartments in Redlands, Calif., Courtyard on 68th Apartments in San Diego, Juniper Terrace Apartments in Escondido, Calif., Southtown at Main Apartments in Santa Ana, Calif., 52nd Marketplace in Arvada, Colo., Prescott Lakes Senior Apartments in Prescott, Ariz., McKinney Orchid Apartments in McKinney, Texas and Fifty 101 and Lyric Apartments, both in Las Vegas.
Brian Eisendrath and Annie Rice from CBRE, Charles Halladay and Jamie Kline from JLL and Tom Sherlock and Erich Pryor from Talonvest arranged the debt financing. Comerica Bank provided five loans, Silvergate Bank provided two and TCF Bank, New York Life, Citizens Business Bank and Texas Capital Bank each provided one loan. The refinance produced more than $39 million in additional loan proceeds, a 76-basis-point reduction in overall interest rate spreads and a 16 percent decrease in Bascom’s portfolio debt service payments.
