Bascom says it plans major renovations to all of the properties, which were built between 1961 and 1986. The nine buildings include studios, one- and two-bedroom apartments averaging 835 sf with average rents of $380. Renovations will include replacement of the roofs, new landscaping, signage, upgraded unit interiors, exterior paint, construction of new pools and tot lots, and asphalt repairs.
Larry Andrews of Sperry Van Ness in Ontario Calif. tells GlobeSt.com that the portfolio sale was extremely complicated because it involved "a tremendous number of moving parts." Andrews represented the Bascom Group while Guy Enriquez and George Ouzanian of Sperry Van Ness represented the sellers.
"It was like doing nine different transactions, and the sellers all wanted to close simultaneously, so we were fortunate to have a patient and willing buyer," Andrews said.
The properties include the 390-unit Kingswood at 540 S. Winery St., the 132-unit Shields East at 4630 E. Shields Ave., the 106-unit Chestnut Lane, the 104-unit Olive Glen at 5226 E. Olive Ave., the 100-unit Eastwood at 1337 N. Ninth St., the 96-unit Oakwood at 1707 N. Maple Ave., the 92-unit Hampton Court at 5719 E. Beck Ave., the 80-unit Tamarack at 4544 S. Waverly Lane, and the 22-unit Cedar Apartments at 522 S. Cedar Ave.
GMAC Commercial Mortgage Corp of Chicago provided debt financing for the transaction, with the assistance of Gary Mozer and Lee Norman of George Smith Partners of Los Angeles. GMAC subsidiary Commercial Equity Investments Inc., of Horsham, Pa. provided equity financing. Sherman Oaks based Stratus Management, Inc. will be providing property management services, with Anaheim- based Commercial Services Building Inc. providing construction management services.
The Bascom Group is one of Southern California's most active value-added apartment investors. The company typically repositions properties by adding capital improvements, increasing rents, reducing expenses and implementing property management measures.
In addition to its 7,000-unit apartment portfolio, Bascom owns approximately 3.5 million sf of industrial property throughout Southern California via the Southern California Industrial Fund, a joint venture with the Magellan Group of Los Angeles. Bascom also owns a large executive suite operation with its Airport Executive Suites in Irvine.
Founders Derek Chen, Jerome Fink and David Kim established the company as a private equity fund in 1996.
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