Bascom Acquires California Community for $127M
This community is one of three with more than 100 units in its Southern California town.
The Bascom Group has acquired Highridge Apartments, a 257-unit value-add community in the coastal town of Ranchos Palos Verdes, Calif. The property traded for $127 million, or $494,163 per unit.
The 1972 vintage property is institutionally owned and has received significant upgrades, including new in-unit washers/dryers and enhanced amenities. It is one of only three multifamily properties in Palos Verdes area with more than 100 units.
“It’s located in a submarket with incredible demographics,” Chad Sanderson, senior principal, business development & acquisitions, The Bascom Group, told Multi-Housing News. “It would be nearly impossible to pencil a new construction project built like this property today. You would not see the combination of a low-density layout, large floorplans and excess parking that defines this property.”
Highridge Apartments features two pools and spas, two fitness centers, a tennis court, a clubhouse and parking. The units average 1,157 square feet—21 percent larger than the submarket average—and include 28 loft-style residences with high ceilings.
“It is one of the property’s most defining features, offering residents a home-like living experience,” Sanderson said of the apartment’s spacious layouts. “This differs significantly from the smaller floorplans in almost all new construction projects.”
READ ALSO: SoCal Multifamily Unites Against Price Gouging
The community is situated along Highridge Road, known for its ocean views, dining and shopping options and its placement in Los Angeles County’s second-ranked school district. Downtown Los Angeles is approximately 30 miles away.
The Bascom Group plans on upgrading resident’s home interiors to that of a Class A community, as well as intends on enhancing existing amenities. SD-Cap will manage the planned property renovations while AMC will provide property management services for the community.
AXA Investment Managers US Inc. provided the acquisition loan on behalf of the transaction. JLL Capital Markets’ Jamie Kline and Annie Rice arranged the debt financing, and the JLL Investment Sales team, led by Blake Rogers and Kevin Sheehan, represented the seller.
Sanderson noted that bidding for the community was very competitive: “The seller needed ‘certainty of close,’ and our track record of performing on acquisitions was a key factor. Additionally, navigating the changing debt market, specifically 10-year U.S. Treasury rates, has been challenging for everyone trying to transact over the past 12 to 18 months.”
Earlier this year, Bascom acquired The Strand, a 408-unit community in West Sacramento, Calif. The $126 million deal was in partnership with Oaktree Capital Management. The property is situated within The Rivers community, with river-adjacent trails, retail space and connectivity throughout the Sacramento area.
