IRVINE, CA - Bascom Value Added Apartment Investors VI, LLC, which is sponsored by The Bascom Group, launched a new offering of its securities pursuant to Rule 506(c) under the Securities Act of 1933, as amended. Fund VI is focused on continuing to acquire apartment properties throughout the U.S. that can be repositioned through value-add renovations, management improvements, recovery from being over leveraged and distressed, or may be trading at a significant discount.
The Fund has been actively raising capital and acquiring property assets. The Fund currently owns five apartment properties with approximately $68 million of equity invested. The Fund is seeking to raise an additional approximately $76 million in equity this offering. Since 1996, Bascom has completed over $22.0 billion in multifamily value-added transactions encompassing 365 multifamily properties and over 105,000 units.
David Kim, Managing Partner, states, "We note that certain leading real estate research firms report that apartment prices have dropped 20%–30% from their 2022 peak due to capital market dislocations, rising interest rates, and oversupply in certain markets. We believe this has created opportunities to acquire properties at a discount to peak pricing. In addition, we believe rising mortgage rates and a persistent housing shortage have made homeownership less affordable, resulting in strong demand for rentals. We expect national new housing supply to decline after 2024 and we project rents to increase steadily, which would enable investors to capitalize on inefficiencies and distressed assets in select markets."
According to the Fund VI Manager, Chad Sanderson, "The Fund sees several potentially attractive investment themes: newer constructed properties trading at discounts to replacement cost, over-leveraged properties that have performed poorly and facing loan maturities, out of favor properties/markets with attractive going in cap rates, properties that have not had the capital invested to compete with newer properties, and areas of distress emerging for certain markets and properties due to oversupply."
Joe Ferguson, Acquisitions Manager, adds, "The previously acquired properties in Fund VI were either acquired off-market or through a compromised marketing process. Currently, we believe capital market interest and apartment fundamentals vary from market to market and between product types. We believe these variances are creating a buying opportunity for inefficiently priced assets."