Bascom Targets $500M of Multifamily Acquisitions

The Bascom Group has closed the offering for its fifth fully discretionary multifamily real estate investment fund after raising equity commitments of $150 million from high net-worth individuals, family offices, and institutions.

This equity, with leverage, provides up to $500 million of buying power for multifamily acquisitions in the US. Its goal is to have Fund V fully invested this year, according to the company.

Bascom Principal Chad Sanderson says that Fund V is designed to acquire value-add, distressed and opportunistic multifamily properties between $10 million and $90 million.

To date, it has acquired 13 multifamily properties for $460 million and is targeting one to two additional acquisitions.

Bascom Managing Partner Jerry Fink said a number of the acquisitions were acquired off-market, avoiding the highly competitive bidding process.

Multifamily Continues to be ‘Incredibly Attractive’

Lisa Knee, EisnerAmper, tells GlobeSt.com that even after record rent increases and cap rate compression in 2021, the multifamily sector continues to be incredibly attractive to high net worth and institutional investors. 

“There are many funds taking advantage of excess capital, and companies that used to syndicate deals are looking to form funds and attract bigger dollars more efficiently,” she said. “There is certainly no sign the capital flow is stopping, and short-term apartment leases are particularly desirable in an inflationary environment.”

Indeed, multifamily has historically been a good investment during periods of high inflation, Justin Steltenpohl, chief operating officer and general counsel, P.B. Bell tells GlobeSt.com. “When combined with the impressive fundamentals that currently exist, it’s not surprising to see increased capital looking at multifamily, resulting in unprecedented transaction activity. It’s a trend that we expect to continue.”