Dealmaker: Bascom Group Pays $94M for California Apartments
The Bascom Group LLC, Irvine, Calif., acquired Villas at Tustin Apartments in Santa Ana, Calif for $94 million, or $231,527 per unit.
California Bank & Trust, San Diego, provided a $66.5 million acquisition loan to Bascom, a private equity firm that specializes in value-added properties.
The 406-unit infill apartment community dates to 1972, said Bascom Senior Principal Chad Sanderson. “We are excited to modernize Villas at Tustin’s interiors and exteriors to allow the property to compete with newly constructed Class A properties,” he said.
HFF, Houston, marketed the property and reported that it had 96.1 percent in the fourth quarter.
Several companies house regional or headquarters offices in the South Coast submarket including Xerox, T-Mobile and CoreLogic and Villas at Tustin is close to 5.3 million square feet of retail space, Sanderson said.
Bascom Senior Vice President Lee Nguyen noted that the South Coast area continues to draw to younger generations of tenants. There are employment centers nearby in Orange, Tustin, Irvine and Anaheim. “To appeal to this group, we plan to give a modern update to Villas at Tustin’s unit interiors and property amenities,” Nguyen. “Villas at Tustin presents a strong value-add opportunity in a location we are very excited about.”
The acquisition marks Bascom’s 21st Orange County multifamily property and its 166th California multifamily property. The firm has acquired $1.3 billion in multifamily properties throughout the U.S. over the past 12 months.
