The Bascom Group Acquires 257-Unit Apartment Complex in Rancho Palos Verdes for $127 Million
The Bascom Group, a private equity firm based in Irvine, California, has acquired the Highridge Apartments, a 257-unit apartment complex in Rancho Palos Verdes, for $127 million. The deal works out to $494,163 per unit.
Property Details
The Highridge Apartments, located at 28125 Peacock Ridge Drive, is one of only three apartment complexes with over 100 units in Rancho Palos Verdes. The property was built in 1972 and offers units that are 21% larger than the average apartment in the city. The complex features two pools and spas, a tennis court, and a 24-hour fitness center.
Renovation Plans
The Bascom Group plans to renovate the apartments and upgrade the complex to make it more “resort-style.” The estimated cost of the planned renovations was not disclosed.
Sellers and Brokers
The seller, Essex Property Trust, was represented by brokers Blake Rogers and Kevin Sheehan of JLL. JLL brokers Annie Rice and Jamie Kline arranged a loan for the buyer, secured by the property, from AXA Investment Managers, for an undisclosed amount.
Market Analysis
The apartment complex is located in a highly competitive market with one of the tightest vacancy rates in all of Los Angeles County, according to Bascom. The Bascom Group’s senior principal, Chad Sanderson, stated, “Highridge Apartments is located in a highly competitive market with one of the tightest vacancy rates in all of Los Angeles County.”
Recent Deals in the South Bay
In January, North Carolina-based Bell Partners landed a $73 million refinancing loan tied to the 216-unit Bell South Bay Apartments in El Segundo. In Torrance, Tokyo-based Koto Estate Company paid $71.5 million for The Highlands, a 121-unit property less than four miles northeast of Bascom’s new property in Rancho Palos Verdes.
About The Bascom Group
The Bascom Group, founded in 1996 by Jerry Fink, David Kim, and Derek Chen, has completed more than $21 billion in multifamily deals for over 100,000 homes, plus more than $4 billion in commercial value-added transactions, according to its website.
Conclusion
The Bascom Group’s acquisition of the Highridge Apartments in Rancho Palos Verdes is a significant deal in the South Bay market, highlighting the region’s continued appeal to investors. The company’s plans to renovate the complex and upgrade its amenities will likely attract new residents and increase property values in the area.
FAQs
* What is the price of the deal?
+ $127 million
* How many units does the complex have?
+ 257
* What is the price per unit?
+ $494,163
* Who represented the seller?
+ Blake Rogers and Kevin Sheehan of JLL
* Who arranged the loan for the buyer?
+ JLL brokers Annie Rice and Jamie Kline
* What is the estimated cost of the planned renovations?
+ Undisclosed
