IRVINE, CA - The Bascom Group has successfully closed the offering for its fifth fully discretionary multifamily real estate investment fund. The fund, Bascom Value Added Apartment Investors V, LLC ("Fund V"), raised equity commitments of $150 million. This equity, with leverage, provides up to $500 million of buying power for multifamily acquisitions in the U.S.
According to Bascom Principal, Chad Sanderson, "We had very strong interest in Fund V and were able to raise the $150 million maximum offering amount. Fund V included high net worth individuals, family offices, and institutions. The bulk of Fund V investors are from RIAs (Registered Investment Advisors) and are repeat investors from previous Bascom-sponsored funds." Sanderson continues, "Fund V is designed to acquire value add, distressed, and opportunistic multifamily properties between $10 million and $90 million."
To date, Fund V has acquired thirteen multifamily properties with a total cost of $460,000,000 and is targeting one to two additional acquisitions. "Our goal is to have Fund V fully invested this year," comments Jerry Fink, Managing Partner of Bascom. "Our discretionary Fund V structure allows us to not only be disciplined buyers, but to close quickly when we identify attractive investment opportunities. A number of the acquisitions were acquired off-market, avoiding the highly competitive bidding process."
"Fund V includes properties ranging from older workforce housing to newer, higher-quality multifamily communities. We plan to complete a renovation plan targeting unit interiors, building exteriors, and community amenities, in addition to implementing an institutional-quality management team," adds David Kim, Managing Partner of Bascom. "Even in this low cap rate environment, we see an opportunity to improve operating performance by leveraging our team's expertise in renovations and operating efficiencies."
"We are continually evaluating all our markets and targeting inefficiently priced properties for our Fund investments," explains Bascom's Acquisitions Manager Joe Ferguson. "The Fund has allowed us to spend more time finding the best relative risk-adjusted returns and maximizing property operations."