IRVINE, CA – The Bascom Group has successfully completed a $235 million refinance of an 11-property multifamily portfolio spanning five states. All of the properties are part of Bascom’s third fully discretionary fund, Bascom Value Added Apartment Investors III, LLC. Most of the new loans are interest-only with spreads over LIBOR ranging from 180 bps to 200 bps and interest only periods of 24-36 months.  The refinanced properties include The Square Apartments in Downey, CA, Camden Village Apartments in Fremont, CA, Del Flora Apartments in Redlands, CA, Courtyard on 68th Apartments in San Diego, Juniper Terrace Apartments in Escondido, CA, Southtown at Main Apartments in Santa Ana, CA, 52nd Marketplace in Arvada, CO, Prescott Lakes Senior Apartments in Prescott, AZ, McKinney Orchid Apartments in McKinney, TX, Fifty 101 and Lyric Apartments, both in Las Vegas, NV.

Bascom worked with several capital market partners and lenders to complete the refinancing. 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. Five loans were provided by Comerica Bank, two from Silvergate Bank, and one loan each from TCF Bank, New York Life, Citizens Business Bank, and Texas Capital Bank. The refinance produced over $39 million in additional loan proceeds, a 76 bp reduction in overall interest rate spreads, and 16% decrease in portfolio debt service payments. 

“Overall, the refinances have dramatically improved the debt structure for our entire portfolio,” said Bascom’s Senior Principal, Chad Sanderson. “Over that past seven months, we have seen a tremendous shift in the capital markets. Both interest rate spreads and the indices have went dramatically lower. This change allowed us to cash out a significant part of equity, yet still improve our projected cash-on-cash returns.”

“In addition to preserving several key current lender relationships, the recent refinances have provided us with several new lending relationships that we look forward to strengthening over the long-term,” adds Lee Nguyen, Senior Vice President Operations for Bascom. “Additionally, with the debt part of the capital stack addressed, we can direct our attention to our constant goal of improving operations and sourcing new acquisitions.”

James D’Argenio, Senior Principal, comments, “Our lending partners at Comerica, Silvergate, TCF Bank, New York Life, Citizens Business Bank, and Texas Capital Bank enabled us to extend our debt term with minimal upfront costs, as well as preserve maximum flexibility to sell the assets with small to no prepayment penalties or lockout periods. We believe these favorable terms will allow us to continue maximizing value for our investors.”

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AUGUSTA, GA – Lexerd Capital Management, a New Jersey-based sponsor of private equity funds, announced that one of its funds has bought The Metropolitan Augusta, an apartment complex in the Belair neighborhood of Augusta, GA. 

The property consists of two hundred thirty units (236) across 16 three-tale multifamily apartment buildings and one community building. The property was originally constructed in 1986 on 14.2 acres, but was renovated over the last two years with updated interiors, new roofs, siding, and a new amenity center including a covered social deck and a golf simulator.

This is the sixth acquisition in Augusta, GA for a Lexerd-sponsored fund. Terms of the transaction were not told.

Augusta is located in the east central section of the state, approximately 150 miles east of Atlanta. Perhaps best known as the home of the Masters Golf Tournament, the Augusta area is also a center for medicine, manufacturing, and military. The Metropolitan is only minutes from I-20, Bobby Jones, Fort Gordon, and Walton Way, very close to the Augusta Mall and business district, and near all shopping, dining, and entertainment in the Augusta area.

Albert Lord III, Founder and CEO of Lexerd, said, “We are very excited to announce this acquisition, our sixth in Augusta. The Metropolitan offers gorgeous living spaces with designer interior and exterior renovations as well as up-to-date amenities, ideally located close to I-20. Augusta’s economy is very strong and we continue to see positive trends in both business and population growth. Augusta has also had record employment over the last few years and the local job market continues to expand.

Mr. Lord added, “We are very pleased to strengthen our portfolio through this acquisition and are committed to finding attractive investment opportunities both in and around the Augusta area, as well as throughout the broader southeastern US.”

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DURHAM, NC – Miami, Florida-based Atlantic | Pacific Companies (A|P) announced the acquisition of The Flats @ 55Twelve in Durham, North Carolina. The property marks A|P’s first acquisition in the city of Durham and also within the company’s third private equity fund, Blue Atlantic Partners Fund III (BAP III).

The Flats @ 55Twelve is located near the intersection of I-40 and Hwy 15-501, and within a 15-minute drive of the area’s major job centers, Research Triangle Park and downtown Durham, which boast 50,000 and 20,000 jobs, respectively.  The 268-unit, three-tale residential property offers a mix of one, two, or three-bedroom floor plans with an average size of 1,003 square feet.  It also enjoys a full complement of luxury amenities such as a resort-style pool, fitness center, clubhouse, and Zen garden.

As part of A|P’s renovation program, the company plans to make significant capital improvements including common area enhancements, interior unit upgrades with granite countertops, shaker-style cabinets, and stainless-steel appliances.  

“The Flats @ 55Twelve is a fantastic addition to our growing North Carolina portfolio,” remarked Greg Ward, Chief Investment Officer at Atlantic | Pacific Real Estate Group.“The property is located in a desirable neighborhood near some of the largest job centers in the expanding Raleigh-Durham market.”

In addition to The Flats @ 55Twelve, A|P currently owns and manages Harrison Grande Apartments in Carey, North Carolina.

Atlantic | Pacific Management (A|P Management), the property leasing and management platform under A|P, will handle all property management responsibilities. 

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