Bascom Continues Buying Spree with $57M California Apartment
Occupancies are consistently above 95 percent in the area.
The Bascom Group is continuing its buying spree in 2024, and has bought a multifamily residential community, in the submarket of Bakersfield, California for about $56.63 million.
The private equity firm is adding the Old River Place, which features 249 units, to its portfolio. The cost comes out to $227,444 per unit.
In the community, tenants can choose two and three-bedroom options. Also, it is close to major grocers and brands including Sprouts, Trader Joe’s, Lululemon, and Target. Additionally, Bascom is planning to make improvements to Old River Place.
“Old River Place has been well-maintained while demonstrating consistent rental demand,” Joe Ferguson, acquisition manager for Bascom, said in a statement.
“As part of our strategic renovation program, Bascom intends to upgrade unit interiors with new appliances, countertops, backsplash, cabinetry, as well as enhancing the property’s exteriors and community amenities. All of the units remain in a classic or original condition, giving our operations team considerable room to add desirable elements while providing residents an affordable housing option in a well located, highly desirable rental community.”
According to Bascom, occupancies in Bakersfield are “consistently” over 95 percent, making it one of the best-performing apartment markets in the country. This can be attributed to high population growth and low supply.
The purchase of Old River Place marks Bascom’s sixth purchase in 2024 and has made $265 million worth of multifamily purchases in the past six months. This includes a $74 million acquisition it made jointly with Oberdorf Real Estate Management for a 360-unit apartment complex called Hearthstone at City Center in Aurora, Colorado.
Also, it doesn’t appear like Bascom is done there. The company said it plans to “continue portfolio expansion through year-end.”
In California Central Valley alone, Bascom has made 26 total acquisitions since its establishment in 1996. For the entire state, it has acquired 130 multifamily properties and over 20,000 units. The Irvine, California-based firm has executed $22 billion worth of multifamily transactions in total.
The latest acquired property in Bakersfield had an undisclosed seller that was represented by The Mogharebi Group’s investment sales team. JLL arranged the financing.
The construction management of Old River Place will be provided by SD-CAP, with Apartment Management Consultants supporting property management.