$54,348 Per Unit Buys 414 Units with Golf Course

FRESNO-A 414-unit apartment community and nine-hole golf course on 45 acres here changed hands recently for $22.5 million, or $54,348 per unit. The Bascom Group of Irvine, CA, acquired the asset from VGCC LP, a an elderly San Francisco couple that acquired the property in 1997 for $8 million.Located at 222 South Clovis Ave., the complex has four swimming pools, tennis courts, a playground. The unit mix is 64 one-bedroom units, 286 two-bedroom units and 64 three-bedroom units. The average unit size is 993 sf. Occupancy is 95%. Based on in-place numbers, the cap rate on the investment is in the mid 6% range.Bascom is currently one of the largest multi-family owners in the Fresno metropolitan area. Since 2002, it has acquired some 15 apartment complexes in Fresno and Clovis. Bascom principal Scott McClave tells GlobeSt.com he was attracted to the low density, large green beltsand and family friendly environment. The golf course, which had been run as a separate operation, is not currently in operation and the feasibility of re-opening the course is under review, says McClave. With regard to the apartment complex, he says the plan is to update the units and add amenities such as barbeque pits and additional playgrounds for children in addition to taking care of “substantial” deferred maintenance. “It was a classic mom-and-pop operation where they put no money into it,” says McClave. “They were at a point where they either needed to do something to the property or sell it.”The off-market transaction was brought to Bascom by Jas Bains of Marcus & Millichap in Sacramento. Debt financing for the acquisition was provided by Merrill Lynch Capital and arranged by Lee Norman and Gary Mozer of George Smith Partners of Century City. The seller was represented by John Hickey of John Hickey Brokerage of San Francisco. Bascom managing director David Kim will manage the operation and repositioning of the property. Manco Abbott is the property manager.