BH Equities/Investcorp Team Up on $71.5 Million Deal for 432 Apartments in Phoenix

Article originally posted on Business Real Estate Weekly on June 25, 2017

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Phoenix – BH Equities LLC in Des Moines, Iowa (Harry Bookey, principal) and Investcorp in New York City, N.Y. have joined forces to buy the 432-unit Arcadia Cove apartments located at the southwest corner of 44th and Oak streets in Phoenix. A company formed by the venture partners paid $71.5 million ($165,509 per unit) to purchase the 18-acre property, which used to be the site of Gerard High School. The seller was BAZV Arcadia Cove LLC, formed by Bascom Arizona Ventures LLC (principals include: Derek Chen, Jerome Fink and David Kim of Bascom Group in Irvine, Calif., and Glenn Daiutolo, who operates from Scottsdale). The sale was brokered through Cindy Cooke and Brad Cooke of Colliers International in Phoenix. Maricopa County records show Arcadia Cove LLC (BH Equities/Investcorp entity) acquired the property with a $49.621 million Freddie Mac loan issued through Holliday Fenoglio Fowler L.P. in Houston, Tex. In June 2013, Bascom Arizona Ventures paid $40.725 million ($94,271 per unit) to acquire Arcadia Cove, which has an address of 2252 N. 44th Street. The company completed significant upgrades to the complex after buying it four years ago. BREW has previously reported BH Equities and Investcorp buying numerous multi-family properties in the Valley on their own and with other venture partners, but Arcadia Cove is believed to be the first project the companies teamed up to buy in Phoenix. The privately-held BH Equities LLC, which has ownership in 51,000 + units across the U.S., is an affiliate of BH Management Services LLC (manager of 67,000 + units in 225 communities). Investcorp is owned by the Bahrain-based Investcorp Bank B.S.C., a publicly-traded company on the Bahrain Bourse (INVCORP).