IRVINE, CA - New York-based Spirit Investment Partners, LLC (Spirit) announced the formation of a new joint venture with Irvine, California-based The Bascom Group, LLC (Bascom). This unique joint venture, named Spirit Bascom Ventures, LLC, will focus primarily on value-add multifamily acquisitions in the eastern region of the United States. Combining New York-based Spirit's pre-existing multifamily platform with Bascom's 16-year operational expertise and a current portfolio of nearly 26,000 units will allow the group to seek out new investment markets in the Midwest, Southeast and East Coast, and provide attractive opportunities to capital.
Spirit currently owns and manages multifamily properties in New York and the Midwest. With Bascom as a capital partner, Spirit will oversee everything from sourcing acquisitions to operations and asset management. Spirit Bascom Ventures, LLC will be scouting Class B/C garden-style and mid-rise apartment buildings with 150 to 500 units as well as portfolio transactions in primary and robust secondary markets. The new venture will seek out distressed, mismanaged and outdated properties in markets where positive trending macroeconomic forces allow for the repositioning of older housing stock through accretive capital improvements. The company is currently negotiating contracts to acquire several properties with others in the pipeline. The partnership is targeting the acquisitions of 5,000 units over the next few years.
"We are excited to be working with Bascom, whose entrepreneurial culture and successful track record of investing in value add multifamily properties throughout the West Coast and Southwest makes them an ideal partner to help execute the business plan of acquiring similar type properties in Eastern U.S. markets," said David Nachman, Principal of Spirit Investment Partners.
Jerome Fink, Managing Partner of Bascom, added, "Coming off the Great Recession, we are experiencing a market opportunity where new construction has been severely limited, demand drivers for apartment renters are highly favorable, and multifamily property operations have not only bottomed but are beginning a healthy recovery. The increased level of foreclosures in the B and C sector should provide a strong buying opportunity for the new venture with Spirit."
Based in New York City, Spirit is a vertically integrated real estate investment company that seeks value add, distressed, and underperforming multifamily assets and note acquisitions where it can employ sound strategic, operational, and financial practices to enhance value. The Company owns and manages a portfolio of multifamily assets in the Northeast and Midwest.
The Bascom Group, LLC is a private equity firm specializing in value-added multifamily, commercial, and 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, improving revenue, and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom has completed over $6.3 billion in multi-family and commercial value-added transactions since 1996, including more than 200 multifamily properties and 55,000 units. Bascom currently ranks 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, 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 U.S.