Bascom Arizona Venture Acquires The Retreat at Speedway for $53.4M, Plans Value-Add Improvements
The Retreat at Speedway, a multifamily property situated in the heart of Tucson, Arizona, has recently changed hands in a $53.4 million transaction. Bascom Arizona Venture, a subsidiary of The Bascom Group based in Irvine, California, is the new owner of the 304-unit complex. This marks the first acquisition for Bascom since February 2020, acquired through their current fund offering, Bascom Value Added Apartment Investors VI, LLC.
Set against the idyllic Catalina Mountains, the garden-style property offers residents an array of amenities, including a swimming pool, spa, fitness center, and clubhouse. The one- and two-bedroom open concept floorplans cater to a modern lifestyle and the location’s proximity to the Catalina Foothills and major employment centers enhances the appeal for residents looking for convenience and quality living spaces.
The acquisition signifies not just a change in ownership, but a promise of rejuvenation for The Retreat at Speedway. A comprehensive capital improvement program is set to be introduced, with enhancements planned for the clubhouse and leisure facilities, as well as residence upgrades. These improvements aim to bolster the living experience and solidify the property’s value within the community.
Joe Daiutolo, Acquisitions Manager for BAZV, highlighted the strategic approach to this purchase: “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.”
The meticulous move is backed by financing from BrightSpire Capital Acquisitions and the expertise of Institutional Property Advisors, ensuring a structured and forward-looking investment. Bryten Real Estate Partners, based in Arizona, will oversee property management.
Fund VI, sponsored by Bascom, continues to seek out multifamily properties with potential for value-addition, by means of aesthetic enhancements, management improvements, or acquiring distressed or undervalued assets. Currently, the Fund owns six apartment properties with an equity investment of approximately $83 million and aims to raise an additional $70 million in equity.
Chad Sanderson, Fund VI Manager, underscored the strategic vision 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.” Joe Ferguson, Vice President, reinforced this sentiment by expressing the value in the acquisition of The Retreat at Speedway, which provides, “a strong going-in yield, with clear value-add upside and a cost basis meaningfully below replacement cost.”
In summary, the strategic acquisition and planned improvements at The Retreat at Speedway represent a concerted effort to bolster the multifamily housing sector in Tucson, providing a glimpse into the investment philosophy and vision of the Bascom Arizona Venture and its affiliates.