The Bascom Group LLC has purchased a 257-unit apartment complex in Rancho Palos Verdes for $127 million, expanding the Orange County private equity firm’s Southern California portfolio.
Irvine-based Bascom announced March 3 the purchase of Highridge Apartments from San Mateo-based Essex Property Trust Inc. for $127 million or $494,163 per unit.
“Highridge Apartments is located in a highly competitive market with one of the tightest vacancy rates in all of Los Angeles County,” The Bascom Group senior principal Chad Sanderson said in a statement.
The multifamily property at 28125 Peacock Ridge Drive in Rancho Palos Verdes was built in 1972 and has been renovated several times since, according to The Bascom Group.
Highridge Apartments spans nearly 300,000 square feet with one, two or three bedrooms spread across 10 buildings.
The private equity firm plans to renovate the interiors of each unit and enhance on-site amenities “to create a more resort-style living experience.”
“Our focus is on making smart, strategic upgrades that will improve the resident experience while increasing the property’s long-term value. With these targeted improvements, we are ensuring Highridge remains a top choice for residents who want space, convenience and a modernized community,” The Bascom Group Senior Vice President of Operations Julie Schoenbachler said in a statement.
Highridge Apartments is The Bascom Group’s latest play in Southern California, with the private equity firm having bought 96 multifamily properties and nearly 16,000 apartment units in the region. A large chunk of those properties – 40 projects and 6,092 units – are in Los Angeles County.
Rare Property in Rancho Palos Verdes
Multifamily properties, especially those with more than 100 units, are rare in Rancho Palos Verdes, a wealthy suburban city on the Palos Verdes Peninsula. The suburb is specifically home to three multifamily properties with 100 units or more, including Highridge Apartments.
Most of the nearly 40,000 people who live in Rancho Palos Verdes – 80.5% to be exact – live in “owner-occupied housing,” as opposed to apartment rentals, according to U.S. Census Bureau data through 2023.
“Few opportunities of scale ever arise in coastal Southern California, and nearly none in Rancho Palos Verdes,” The Bascom Group Acquisitions Manager Joe Ferguson said in a statement.
A company statement about the purchase of Highridge Apartments described Rancho Palos Verdes as “a highly sought-after coastal enclave known for its scenic beauty, tranquil atmosphere and exceptional quality of life.”
The Bascom Group’s Deal Points
The Bascom Group received an acquisition loan from AXA Investment Managers US Inc. to facilitate the purchase. Blake Rogers and Kevin Sheehan of JLL Investment Sales helped broker the deal, representing Essex Property Trust in the transaction.
Debt financing was arranged by Annie Rice and Jamie Kline of JLL Capital Markets.
The property will be managed by AMC and SD-Cap was retained to oversee the property’s planned renovations.
Derek Chen, Jerome Fink and David Kim founded The Bascom Group in 1996. The private equity firm specializes in multifamily projects, commercial real estate, non-performing loans and investments.
The Bascom Group has specifically completed more than $22 billion of multifamily transactions, covering 363 apartment properties and 105,000 units, since its founding. The private equity firm’s commercial transaction volume is $5.8 billion.
