Dealmaker: Bascom Group Acquires Calif. Apartments for $17M

The Bascom Group LLC, Irvine, Calif., acquired 76-unit infill apartment community Casanova Grove Apartments in Monterey, Calif., for $16.7 million.

The deal, which closed on September 14, represented a nearly $220,000 per unit purchase price.

Talonvest Capital Relationship Manager Erich Pryor and Principal Thomas Sherlock secured acquisition financing from NXT Capital, Chicago.

Casanova Grove is less than two miles from the Pacific Ocean; the Monterey Bay Aquarium, Mazda Raceway Laguna Seca and Pebble Beach Resorts are all nearby. Major local employers include Dole and the Naval Postgraduate School.

Bascom Vice President James Singleton said Bascom acquired Casanova Grove in an off-market transaction. “The seller owned and self-managed the property since 2000,” he said. “We are excited about the location and the opportunity to purchase one of a handful of larger apartment communities in a highly supply constrained multifamily market.”

The firm plans a comprehensive renovation plan to position the property to compete with higher-end existing multifamily product in the immediate area, Bascom Vice President Tim Whiting said. Improvements will include amenity upgrades, exterior redesigns and interior renovations.

“Roadblocks to home ownership accompanied by limited apartment supply in the market will help drive demand for modernized rental housing [in Monterey],” said Bascom Vice President Chris MacLeod. He noted house prices in the area range from $532,000 to $2.97 million.

Casanova Grove marks Bascom’s twenty-third multifamily property in central California and its 168th California multifamily property. Earlier this summer Bascom sold Arcadia Cove Apartments in Phoenix to BH Equities, Des Moines, Iowa, for $71.5 million.

The 432-unit Arcadia Cove delivered in 1996. Bascom acquired it in 2013 and upgraded exterior areas including swimming pools, the spa and a barbecue pit suring its ownership.