Bascom Group Acquires Sacramento Community for $126M

The garden-style property is situated in an upscale neighborhood.

The Bascom Group, in partnership with Oaktree Capital Management, has acquired The Strand, a 408-unit community in West Sacramento, Calif. The property sold for $126 million, or $308,824 per unit.

“We like West Sacramento for several reasons, including that it has had major investment into the submarket with the new CalSTRS headquarters project completion and the A’s playing at Sutter Health Park for the next three to four years,” Jim Singleton, senior vice president, principal, The Bascom Group, told Multi-Housing News.

The Strand, a garden-style community completed in 2021, is situated within The Rivers community. The high-income area features river-adjacent waking trails, retail space and easy connectivity throughout the Sacramento area. Downtown is an approximately 10-minute drive away.

“In The Rivers community, new homes are being built right behind our project and are being well-received,” Singleton said. “People will continue to be drawn to our location as an excellent residential living option with unmatched connectivity to many of Sacramento’s best current and future attractions.”

The community features junior one-bedrooms as well as one-, two- and three-bedroom units. At the time of sale it was 98 percent occupied, Yardi Matrix data shows.

Community-wide amenities include a clubhouse, dog park, indoor and outdoor fitness centers, two pools and spas and electric vehicle charging stations. Bascom intends on implementing minor upgrades to the community.

Louis Friedel, Clay Akiwenze and Hank Workman of Berkadia arranged the debt financing for the acquisition. Luke Goodwin and Alex Porter of Walton Street Capital provided the acquisition loan. Jason Parr and Scott MacDonald of Berkadia represented the seller. Sares Regis will head up property management.

Sacramento growth

Overall, Sacramento’s multifamily performance has had its fair share of ups and downs. As of July 2024, the average overall occupancy rate was down 10 basis points year-over-year to 94.7 percent in stabilized properties. Yet, the area is seeing growth, with employment expanding 2.5 percent in the 12 months ending in March of last year.

“This acquisition is a positive sign for the growing Sacramento market, which remains an attractive target for investors,” Michael J. Romer, Esq., Romer Debbas LLP, told MHN.

In December, Sacramento’s 1,300-unit Logan Park was acquired by Lincoln Avenue Communities for $112.5 million. At the time, no other community had fetched more than $112 million in metro Sacramento since 2022.