It's rare to see a developer build properties and then hold them for 40 years. But that’s exactly what happened with the Creekstone and Gable Point in Dallas.
The glut of apartments hitting the market over the last couple of years has created an unprecedented buying opportunity for multifamily investors.
The Bascom Group is one of the latest firms to scoop up a new-build with its purchase of The Ellison, a 294-unit property completed in 2024 in the Summerlin/Spring Valley submarket of Las Vegas for $103 million, or $350,340 per unit, according to an April 13 press release.
"Opportunities like The Ellison do not come around often,” Tom Gilfillan, vice president at Bascom, said in the press release. “This is a brand-new, institutional-quality asset acquired at a basis significantly below what it would cost to build today, in a submarket with one of the strongest long-term growth stories in Las Vegas. We are excited to get to work.”
The five-story Ellison offers studio, one- and two-bedroom floor plans averaging 901 square feet. It is a wrap construction property that offers eight levels of direct-access structured parking. Its rooftop includes a heated resort-style pool and spa with a jumbotron screen, a clubhouse lounge, a spin room, a Pilates studio and an indoor-outdoor fitness center.
Bascom hired Cushman & Wakefield to operate the property and complete its lease-up.
The property sits along I-215 in a stretch of southwest Las Vegas with direct access to Summerlin, the Las Vegas Strip and Harry Reid International Airport. Several major developments are underway nearby, including Athletics' new MLB stadium, Intermountain Health's children's hospital and expansions of Roseman University’s nursing school and the UNLV Harry Reid Research & Technology Park.
Lee Redmond, Nicholas Schroeder, Vincent Punzi and Lowell Takahashi of Newmark arranged the debt financing for the acquisition, while AXA Investment Managers US provided the acquisition loan. The Newmark Investment Sales team, led by Jonathan Merhaut, Doug Schuster and Curt Allsop, represented the seller, according to the release.
Bascom is no newcomer to Las Vegas. Since 2013, the firm has bought 37 properties totaling 9,959 units across the metro, for over $1.4 billion in total acquisition cost. It currently owns nine properties in the market.
“The Ellison is a notable example of why we keep coming back to Las Vegas,” Gilfillan said. “The Summerlin/Spring Valley submarket consistently outperforms the metro, with stronger demographics, higher income levels, and demand drivers that are real and growing.”
Bascom has also been amassing capital for buying opportunities outside of Las Vegas. Last year, the firm launched a new Rule 506(c) fund offering to target $500 million in value-add, discounted and distressed apartment acquisitions.
Bascom Value Added Apartment Investors VI is the company’s sixth private investment fund and was seeded with five multifamily properties acquired at an average discount of 29% to peak pricing.
With the fund, Bascom is targeting newly constructed properties trading at discounts to replacement cost, overleveraged apartments facing loan maturities, assets in out-of-favor markets with attractive going-in cap rates, and buildings needing capital to compete with newer properties.
“Fund VI is focused on acquiring apartment properties throughout the U.S. that can be repositioned through value-add renovations, management improvements, recovery from being over-leveraged and distressed or may be trading at a significant discount,” Bascom Fund Manager Chad Sanderson said in the release.
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