The Bascom Group, LLC, a private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate-related investments and operating companies, has acquired Sunset Cove Apartments, a 123-unit infill apartment community in Costa Mesa, California, for $33.3 million or $270,731 per unit from an undisclosed seller. Built in 1970, the property is located in the Westside Costa Mesa community.
Sunset Cove offers immediate access to major transportation routes including SR-55, I-405, and SR-73 freeways and is close to South Coast Plaza and Pacific City, in addition to numerous golf courses and beaches. The property’s access to employment hubs like Irvine Business Complex, South Coast Metro, and Newport Center provide residents convenient commutes to Southern California’s employers in high-tech manufacturing, biotechnology, healthcare, tourism, and professional business services.
Brian Eisendrath, Annie Rice, and Brandon Smith of CBRE arranged the debt financing. The sale was brokered by Jim Fisher, Jeff Rowerdink, Joe Leon, and Mike Smith of Berkadia.
Chad Sanderson, senior principal of Bascom, says, “Sunset Cove was a rare opportunity to acquire a core asset in a very desirable Orange County coastal market. We were impressed by the quality of the asset and its proximity to numerous retail, entertainment, and employment centers. This marks the third acquisition by Bascom’s fourth fully discretionary equity fund.”
Paul Diamond, SVP of operations for Bascom, adds, “We plan to implement some modest property upgrades that will make Sunset Cove a top choice among multifamily properties in the immediate area. These improvements will help to sustain the property over the long term and offer a higher-quality living experience for tenants.”
Chris MacLeod, Vice President of Bascom, also comments, “The market fundamentals in Costa Mesa are strong. Costa Mesa has extremely high barriers for new multifamily development. Additionally, we continue to see the demographics in the market improve year after year.”
Sunset Cove marks Bascom’s 170th multifamily property closed in California. Over the past twelve months, Bascom has completed over $1 billion in multifamily transactions throughout the country. Since 1998, Bascom and its affiliates have acquired 313 multifamily properties throughout the United States totaling 82,557 units and currently holds 18,305 units in its portfolio.