Irvine, CA – March 21, 2025 – The Bascom Group, LLC (“Bascom”) has launched a new 506C Fund offering that will target $500MM in value-add, discounted, and distressed apartment acquisitions. Bascom Value Added Apartment Investors VI, LLC (“Fund VI”), is Bascom’s sixth private investment fund, and is seeded with five multifamily properties acquired at an average 29% discount to peak pricing. Since 1996, Bascom has completed over $22.0 billion in multifamily value-added transactions encompassing 363 multifamily properties and over 105,000 units. Over this time-period, Bascom has produced an average annual return that has significantly beat the long-term average returns for the S&P 500.
Leading real estate research firms report that apartment prices have dropped 20%–30% from their 2022 peak due to capital market dislocations, rising interest rates, and oversupply in certain markets. This has created opportunities to acquire properties at a discount to peak pricing. Meanwhile, rising mortgage rates and a persistent housing shortage have made homeownership less affordable, sustaining strong demand for rentals. With national new supply expected to decline after 2024 and rents projected to grow steadily, investors can capitalize on inefficiencies and distressed assets in select markets.
According to the Fund Manager, Chad Sanderson, “Fund VI is focused on acquiring apartment properties throughout the U.S. that can be repositioned through value-add renovations, management improvements, recovery from being over leveraged and distressed, or may be trading at a significant discount.” The Fund has been actively raising capital and acquiring property investments. The Fund has invested $68MM of equity in five properties in four different states to date. Sanderson continues, “We believe this is a very compelling investment offering with each property was acquired at a 18% – 39% discount to peak pricing with significant upside through value added repositioning.”
The Fund sees several potentially attractive investment themes: newer constructed properties trading at discounts to replacement cost, over-leveraged properties that have performed poorly and facing loan maturities, out of favor properties/markets with attractive going in cap rates, properties that have not had the capital invested to compete with newer properties, and areas of distress emerging for certain markets and properties due to oversupply.
Joe Ferguson, Acquisitions Manager, adds, “The properties in Fund VI were either acquired off-market or through a compromised marketing process. Currently, capital market interest and apartment fundamentals vary from market to market and between product types. The Fund believes these variances are creating a unique buying opportunity for inefficiently priced assets.” The Fund has a targeted equity raise of $150 to $200 million. Currently, $75 to $125 million in Fund interests are still available for investors. There is a minimum investment of $100,000 and investors must be accredited.
Bascom, as the Sponsor, has completed over $22 billion in value-add apartment transactions over a 28-year period. “Bascom’s long-term track record is an important consideration for every investor. Our team has an average tenure of over 15 years, bringing critical experience and risk management to every property investment.” says David Kim, Bascom’s Managing Partner.
Jerome Fink, Managing Partner, further states that “Capital market dislocations are creating considerable opportunities to acquire attractively priced apartment investments. This coupled with shortages in single-family housing supply and growing affordability challenges continue to drive demand and forecast rent growth for apartments.” Leading real estate research firms estimates that apartment prices are down 20% – 30% or more from the peak in early 2022. National rent growth for apartments is projected to average 3.3% over the next three years.
Please contact Chad Sanderson at (949) 302-3777 or csanderson@bascomgroup.com or Joe Ferguson at (608) 445-7836 or jferguson@bascomgroup.com to receive the PPM, arrange a time to learn more about this investment opportunity, or if you would like any additional information.
About Bascom:
Bascom is a minority-owned private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate related investments and operating companies. Bascom sources value-added and distressed properties including many through foreclosure, bankruptcy, or short sales and repositions them by adding capital improvements, improving revenue, and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom, founded by principals Derek Chen, Jerry Fink, and David Kim, is one of the most active and seasoned buyers and operators of apartment communities in the U.S. Since 1996, Bascom has completed over $22.0 billion in multifamily value-added transactions encompassing 363 multifamily properties and over 105,000 units. Bascom’s commercial transaction volume is $5.8 billion in total and amounts to over 23.4 million square feet.
Bascom has ranked among the top 50 multifamily owners in the U.S. Bascom’s subsidiaries and joint ventures include the Bascom Value Added Apartment Investors, Shubin Nadal Associates, Spirit Bascom Ventures, REDA Bascom Ventures, Bascom Northwest Ventures, Bascom Arizona Ventures, Harbor Associates, Village Partners Ventures, CRES, and Realm Group.
Bascom’s subsidiaries also include Premier Workspaces, one of the largest privately held executive suite, coworking and shared workspace companies in the U.S. For additional information, please visit www.bascomgroup.com.
Disclaimer: This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
Media Contact
Company Name: The Bascom Group, LLC
Contact Person: PAUL DIAMOND
Email: Send Email
Address:7 Corporate Park, Suite 100
City: Irvine
State: CA 92606
Country: United States
Website: https://bascomgroup.com/
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