The Bascom Group LLC has acquired Fontana, California-based Laurel Tree, an apartment community. The price of the purchase was $5.25 million.
IRVINE, Calif., Jan. 16, 2017 /PRNewswire/ — The Bascom Group, LLC (“Bascom”) has acquired Laurel Tree, a 36-unit apartment community located at 17923 Arrow Boulevard, Fontana, California for $5,250,000. The sale represents a price of $145,833 per unit or $160.71 per square foot. Marcus & Millichap represented both the buyer and seller in the transaction. Manufacturer’s Bank provided the new loan. James D’Argenio sourced and managed the transaction for Bascom.
Built in 1989 and sitting on more than two-and-a-half acres, Laurel Tree offers residents a low-density living community, a central Inland Empire location, and easy access to key employment centers. The property’s unit mix is dominated by spacious three bedroom units, offering a single-family type floorplan unique to this submarket. Laurel is set to take advantage of accelerated population growth in the Inland Empire as rising prices and rents in Los Angeles and Orange County force residents to look elsewhere for more affordable housing. The Redlands-Fontana-High Desert submarket has developed into a growing economic hub, with a strong medical base, world-class transportation and logistics centers, and industries such as construction, leisure, and hospitality experiencing substantial year-over-year growth. The site of the former Rialto Airport, a short distance from Laurel Tree, is being redeveloped into a 1,500-acre master-planned mixed-use community. The new development will include 107 acres of mostly for-sale housing, 352 acres of public space, and 991 acres of retail, office, and industrial development.
Fontana’s apartment market continues to strengthen as average rents have increased for six consecutive years to $1,303, or a 39% increase. Despite a $316 average rent increase over the previous 12 months, occupancy remains high at 97.4%, making the city one of the tightest rental submarkets in Southern California. Even so, the Inland Empire’s stock of multifamily units increased by just 1.4% over the past year, as single-family construction accounted for 75% of new residential development. This favorable development pipeline limits direct competition and creates an attractive environment for Bascom’s repositioning of Laurel Tree.
James, Senior Principal for Bascom, adds “With 80% three bedroom units onsite, Laurel Tree is well positioned to attract young professionals and families seeking quality, rental housing. With companies like Amazon, Niagara Water, and Monster taking millions of square feet of commercial space within a short drive of the property, job growth will drive housing demand and increase pressure on existing rental stock.”
About Bascom: The Bascom Group, LLC is a private equity firm specializing in value-added multifamily, commercial, non-performing loans, and real estate related investments and operating companies. Bascom sources value-added and distressed properties including many through foreclosure, bankruptcy, or short sales and repositions them by adding extensive capital improvements, increasing revenue, and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom, founded by principals Jerry Fink, David Kim, and Derek Chen, is one of the most active and seasoned buyers and operators of apartment communities in the U.S. Bascom has completed over $12 billion in multifamily and commercial value-added transactions since 1996 including more than 304 multifamily properties containing over 80,000 units. Bascom has ranked among the top 50 multifamily owners in the U.S. Bascom’s subsidiaries and joint ventures include the Southern California Industrial Fund, Rushmore Properties, Bascom Portfolio Advisors, Shubin Nadal Associates, Spirit Bascom Ventures, REDA Bascom Ventures, MHF RM Holdings, Bascom Northwest Ventures, Bascom Arizona Ventures, Harbor Associates, Village Venture Partners, and the Realm Group. Bascom’s subsidiaries also include Premier Business Centers, the largest privately held executive suite company in the U.S. For additional information, please visit www.bascomgroup.com.