SANTA ANA, CA - The Bascom Group, LLC has acquired 5th Street Apartments, a 38-unit community located at 701 East 5th Street, Santa Ana, California for $4,150,000 or $109,211 per unit. Debt financing was provided by Banc of California and arranged by Jonathan Wintner and Olga Alworth of Meridian Capital Group. Hooman Emanuel with Emanuel Real Estate Group represented Bascom in the transaction.
The property consists of two apartment buildings located in the heart of the integrating and redeveloping 94-acre Station District of downtown Santa Ana. The property is walking distance to Santa Ana's downtown district, which has experienced a renaissance as entrepreneurs and restaurateurs seek to capitalize on the influx of young professionals and creative artist-types search for unique, affordable communities with walkability and nightlife amenities. Places like the Playground and Chapter One are gaining popularity across Orange County as some of the best restaurants in town.
Along with new businesses entering downtown, institutional developers like City Ventures and Related Co. have redeveloped and renovated older homes into premium housing for the community, transforming the neighborhood with beautiful buildings and modern streetscape.
Built in 1955 and 1961, the unit mix is comprised of efficiencies, studios, and one bedroom units with open parking spaces and twelve detached garages. With original interior finishes still in place, renovation plans include modernizing units with an upgrade package that will compete with newer properties in downtown Santa Ana.
This is the second acquisition under Bascom's new Private Capital Platform, which focuses on buying smaller, value-add multifamily properties in infill locations in Southern California with high net worth accredited investors. Bascom recently acquired the Amabel Townhomes, a 13-unit community located at 309 Amabel Street, Los Angeles, California, for $2,300,000 in May 2014. Utilizing equity from accredited individuals and family offices, the new platform acquires smaller, value-add deals and applies the same reposition and oversight procedures that are used at the institutional property size level.
James D'Argenio, Principal for Bascom, comments, "We've identified another undervalued apartment community in a redeveloping neighborhood, allowing us to buy in at a great basis and reposition with physical upgrades and professional management." Lee Nguyen, Senior Vice President - Operations for Bascom further adds "The North Santa Ana submarket carries one of the highest occupancies for rental product in Orange County. This coupled with new demand pressures for upgraded interior units will allow us drive onsite performance and continue benefitting from the positive changes in Santa Ana."