Bascom Group Expands Multifamily Presence in Southern Calif.
The private equity firm has acquired the 43-unit Juniper Terrace in Escondido, Calif., marking its ninth acquisition in Southern California in the past 12 months.
Juniper Terrace, Escondido, Calif.
Irvine, Calif.—Private equity firm The Bascom Group has widened its reach in Southern California with its latest acquisition of Juniper Terrace, a 43-unit apartment community in Escondido. The $7.7 million acquisition marks the company’s ninth acquisition in the SoCal region in the past 12 months.
“We saw great value-add potential with a community already offering a unique amenity package for this size property,” James D’Argenio,  principal for Bascom, told MHN.
Meridian Capital’s Olga Alworth arranged the debt financing and Manufacturers Bank provided the new loan for the transaction. CBRE‘s Eric Comer brokered the acquisition.
Located at 1580 South Juniper Street, the community was built in 1973 and offers low-density, single-family-home style living. Units are on the larger side, offering two-bedroom, two-bathroom floor plans and averaging 1,039 square feet. Residences also come with two-car garages as well to give a single-family home atmosphere. Community amenities include a pool, recreation room and leasing office.
Bascom plans to modernize the community by remodeling interiors, enhancing amenities and improving curb appeal.
“Due to minor deferred maintenance, we can put most of our capital dollars into upgrades that will remodel interiors and enhance the community to compete with newer rental product,” said James D’Argenio, Â principal for Bascom. He added that upgrades will include a relandscaped community, new multi-tone paint scheme and enhanced design elements.
Community upgrades are likely needed due to Escondido’s strong rental market. Rents increased 6.7 percent from fourth-quarter 2014 to fourth-quarter 2015, according to Bascom’s release, and the vacancy rate is currently. 3.3 percent. Bascom attributes the strong market fundamentals to “roadblocks to home ownership and below-average vacancy rates [that] will continue to push apartment rents higher and drive the demand for modernized rental housing throughout Escondido and San Diego County.”
Image courtesy of The Bascom Group
