Bascom Acquires Denver-Area M-F for $60M
- Jul 29, 2008
The Bascom Group has acquired Gleneagles Apartments, a 562-unit property in Northglenn, Colo., a northern suburb of Denver, for $60.8 million. The seller was Principal Life Insurance Co. Marcus & Millichap Real Estate Investment Services’ most recent report on the Denver multi-family market posited that the area will remain relatively healthy through 2008, with vacancies forecast to trend about to 6.9 percent by the end of the year, or about 60 basis points higher than the beginning of the year. New construction will add to the market’s supply, and single-family houses and vacant condo units being rented will take some renters out of the market. Still, some 19,700 new jobs–a prime driver of apartment rentals–will be created in metro Denver by the end of 2008, a gain of 1.6 percent for the year.Gleneagles, built in phases during 1999 and 2002, is located on a 24.2-acre site and is composed of mostly two- and three-bedroom units. It sports a variety of amenities, such as two swimming pools, two fitness centers, two clubhouses, two business centers and an outdoor fireplace. The property will be managed by Apartment Management Consultants. The acquisition represents an expansion of Bascom’s Denver-area portfolio to 19 properties totaling 6,880 units. Irvine, Calif.-based Bascom, a private equity investor, has been an active buyer of multi-family properties in the western United States in recent years, acquiring nearly 51,000 units distributed among 195 properties thus far. According to Bascom, its strategy in acquisition is to find value-added apartment properties of more than 60 units and reposition them by making capital improvements and reducing expenses through operational efficiencies. Typically it holds properties for five years. Jeff Hawks and Doug Andrews from Apartment Realty Advisors represented both parties in the transaction. The acquisition for Bascom was managed by Jeffrey Fuller and Greg Hodge and debt financing was arranged by Bethany Bailey, Brian Eisendrath, Troy Tegeler, Eric Tupler and Mike Easter from CBRE Melody.