Fierce Competition For Class-B Multifamily
Irvine's Bascom Group just closed its second real estate fund, $300M of buying power across 11 states, and its most recent purchase in the Bay Area won't be its last. (As they say, once you go Bay, you never go away.)
Bascom principal and fund manager Chad Sanderson tells us he's particularly focused on assets in California and has interesting opportunities in the Bay Area. That's all he can say right now, but he did mention a 415 number was interrupting our call. He's tapped into the fund already to close on Bascom's first Bay Area deal: Campbell Plaza (below), a 121-unit property built in 1972. The firm's hungry for more in the area, targeting Class-B and C multifamily product for $8M to $45M.
Post purchase, the firm typically does a physical renovation or improvement of operations. (Though as the pic shows, how can one improve on the simplicity of a building named "office?") Since capital raising started, the fund has bought six multifamily properties--or 1,400 units--with two others about to close. In all, the firm has 18,000 units. Chad has noticed markets like the Bay Area are notorious for bidding wars, but his tip is to develop relationships to source deals and be proactive and aggressive when it comes time to slam down an offer.
