Bascom Northwest targeted this owner-managed property for an unsolicited offer after market surveys indicated the site had very high vacancy and the lowest rents in the submarket. Formerly known as Lexington Square, the 14.79 acre site is located blocks from Salt Lake City’s burgeoning downtown core. The property was encumbered by tax-exempt bonds and resident income restrictions. Contrary to the owner’s belief, Bascom Northwest determined the bonds could be defeased and refinanced, allowing the resident income and rental restrictions to be removed. The asset repositioning effort included transitioning to a market rate tenant base while upgrading the amenities and curb appeal for an even higher income resident profile. A major leasing office renovation included a private cinema and business center, while new garages and new interior hallway finishes were also added. Apartment home upgrades included installation of dishwashers, new appliances and other finishes. In the first year of ownership, NOI increased 123% over the prior ownership’s performance.

City
Salt Lake City, Utah
Units
418
Renovation Budget
$2.2M ($5620/ unit)
Debt Partner

Prudential Mortgage Capital

Equity Partner

BlackRock Realty Advisors