Bascom Buys Its First Hawaii Apartment Units for $32.2M

HONOLULU, HI-The Bascom Group of Irvine, Calif. has acquired a 406-unit apartment community in the City of Waipahu for $32.2 million. The project was 97.5% occupied at the time of sale.

Built in 1966, Sunset Villa Apartments consists of 98 two-story buildings with two- and three-bedroom units that average 891 sf. Rents range from $905 to $1,220. Amenities include a learning center, swimming pool, whirlpool, laundry facilities and garages.

Bascom’s Director of Acquisitions Jerome Fink tells GlobeSt.com the property was acquired with an institutional partner at an 8% cap rate. The duo assumed an existing loan carrying an interest rate of 6.19%. Fink says the interest rate on the loan is a little above market but is offset by the fact that the state waives real estate and excise taxes for the project because 50% of the units are leased to low-to-moderate income tenants.