The Bascom Group, the Irvine, Calif.-based private equity firm, has closed a $185 million real estate investment fund, which has already been used to acquire numerous properties, including in Fullerton, Calif; Denver; and Coldwater Springs outside of Phoenix, Arizona.
IRVINE, Calif., Sep 27, 2012 (BUSINESS WIRE) — The Bascom Group, LLC announces today the successful closing of its first fully discretionary real estate investment fund. The fund, Bascom Value Added Apartment Investors LLC, provides up to $185MM of buying power, with leverage, for value added multifamily acquisitions across an eleven state region.
“The timing in the market is right for this vehicle. We are seeing a strong rebound taking place in the multifamily sector. The discretionary fund along with our established institutional partners allows us to take advantage of the many attractive investments in the market,” explains David Kim, Bascom’s Managing Partner.
Jerome Fink, Managing Partner of Bascom, adds, “The fund is designed to acquire smaller $8 to $40 million class B and C properties that are outside the typical investment parameters of many institutional investors today. There is just less capital focused on the smaller, value added deals.” Since the start of capital raise, the fund has already acquired three properties and has specified another three that are expected to close in the third and fourth quarter of 2012.
According to Bascom Principal Chad Sanderson, “We are excited about the deals we have closed and specified in the fund to date. We have a blend of investments across several markets ranging from heavily distressed, value added renovations to lighter value add investments with current cash flow. We believe our fund offers investors direct investment with an experienced multifamily group and an economic structure that is very similar to what we have done over the past sixteen years with numerous institutional joint venture partners.”
To date the fund has acquired Veranda Apartments located in Fullerton, California – 128 units, constructed in 1985; Hyland Park located in Denver, Colorado – 492 units, constructed in 1985; and Coldwater Springs located in Phoenix, Arizona – 301 units, constructed in 2007.
About The Bascom Group, LLC: The Bascom Group, LLC ( http://www.bascomgroup.com ) is a private equity firm specializing in value-added multifamily acquisitions and operations. The firm has completed over $600 million in transactions over the past year. Bascom sources value-added and distressed properties including many through foreclosure, bankruptcy, or short sales and repositions them by adding extensive capital improvements, improving revenue, and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom has completed over $6.5 billion in multi-family and commercial value-added transactions since 1996 including more than 200 multifamily properties and 58,000 units. Bascom currently ranks among the top 50 multifamily owners in the US. Bascom’s subsidiaries and joint ventures include the Southern California Industrial Fund, Rushmore Properties, Bascom Portfolio Advisors, Shubin Nadal Associates, Spirit Investors, Bascom Northwest Ventures, Bascom Arizona Ventures, and the Realm Group. Bascom’s subsidiaries also include Premier Business Centers, the largest privately held executive suite company in the US.