Wirtz is spearheading Bascom's push into Northern California, Oregon, Washington, and Utah. Bascom plans to acquire $300 million of apartments in these areas over the next three years. The company's business plan is to acquire apartment communities in good locations and then execute a market repositioning with extensive capital improvements and institutional-quality property management resulting in increased rents, reduced expenses, and significant added resale value. Initially, Bascom Northwest Ventures is focusing on 50-plus unit communities in the Bay Area, Portland and Seattle.

"The Puget Sound area has suffered considerably from the layoffs at Boeing and the dot-com implosion," says Wirtz, formerly vice president of acquisitions with Essex Property Trust and AvalonBay Communities. "Low interest rates have also hurt the owners as low mortgage payments now look very attractive relative to renting."

As a result, says Wirtz, it is not uncommon to see owners' offering several months free rent and operating at 20% or more economic vacancy. "The loss in income has resulted in a number of larger properties lost to foreclosure last year," says Wirtz. "With several large institutions and REITs selling, and increasing interest rates coupled with nervousness on the part of buyers, we expect to see further declines in sales prices."

Nonetheless, says Wirtz, the Puget Sound area is beginning to show signs of stabilization. "The large rent decreases experienced in 2001-2003 are now leveling off," he says. "Bellevue should be poised for rent growth within the next couple of years.