Irvine’s Bascom Group, one of the largest apartment owners based in Orange County, has refinanced 11 properties it owns, spread across five states.
The $235 million refinancing includes one local complex, the Southtown at Main apartments in Santa Ana, which Bascom acquired in 2015 for $8.6 million. The 44-unit complex is near the intersection of Warner Avenue and Main Street.
Other refinanced properties include five in California, two in Las Vegas and one each in Colorado, Arizona and Texas.
Three groups arranged the debt financing: CBRE, JLL and Irvine-based Talonvest Capital, whose founders have ties to Buchanan Street Partners.
Improved Debt Structure
Bascom Senior Principal Chad Sanderson said the refinances were driven by a shift in capital markets, and “have dramatically improved the debt structure for our entire portfolio.”
“Both interest rate spreads and the indices have moved dramatically lower. This change allowed us to cash out a significant portion of equity, yet still improve our projected cash-on-cash returns,” Sanderson said.
Bascom Group, a privately held real estate firm best known for investing in existing apartment properties across the country, has completed over $15.5 billion in multifamily transactions, including 323 multifamily properties with several in Orange County.
The company has more than a dozen subsidiaries and joint ventures. It just sold a newly built medical office property in Newport Beach (see story, page 3).
