IRVINE, CA - The Bascom Group, LLC has successfully closed its second fully discretionary real estate investment fund. The fund, Bascom Value Added Apartment Investors II, LLC, provides up to $300MM of buying power, with leverage, for value added multifamily acquisitions across an eleven state region.
Bascom Principal and Fund Manager, Chad Sanderson, comments, "We had very strong investor interest in our second discretionary fund. Our second fund closed with $80 million of equity, which exceeded our $75 million target. The investor base was again predominantly individual high net worth investors. Overall, the discretionary fund program has complimented our long-standing institutional equity partnerships."
Since the start of capital raise, the fund has acquired six multifamily properties and has specified another two properties that are expected to close in the first quarter of 2014. Jerome Fink, Managing Partner of Bascom, comments, "Fund II is designed to acquire individual properties priced between $8 and $45 million. The main focus of the fund is on class B and C properties that are often outside the typical investment parameters of many institutional investors. Historically, we have been able to find better risk-adjusted returns on value added deals with these characteristics."
"We are very pleased with the fund's investment properties to date. The fund has a blend of investments across several markets ranging from heavily distressed properties to light rehab acquisitions," adds David Kim, Managing Partner of Bascom. "We continue to see investment opportunities with a large spread between going-in cap rates and borrowing rates. The combination of these two factors is producing very attractive current cash flow on top of the longer-term income growth potential from renovations and operational improvements."
To date the fund has acquired Andalucia Apartments located in Palm Springs, California – 175 units, constructed in 1979; Arcadia Cove located in Phoenix, Arizona – 432 units, constructed in 1996; Campbell Plaza located in Campbell, California – 121 units, constructed in 1972; The Terraces located in Prescott, Arizona – 226 units, constructed in 2003; Broadstone Montecito located in Las Vegas, Nevada – 336 units, constructed in 2007; and Huntington Villas located in Huntington Beach, California – 114 units, constructed in 1987.