Bascom Group Acquires Another Texas Multifamily Community in Houston

News provided by

Dec 20, 2022, 08:38 ET

IRVINE, Calif., Dec. 20, 2022 /PRNewswire/ -- The Bascom Group, LLC ("Bascom") continued their acquisition run in Texas, acquiring a 346-unit apartment community in Houston and marking their fifth acquisition in Houston in the past two years. Montierra is a 346-unit community, built in 2003 and located in the Uptown/Galleria submarket. The acquisition also marks Bascom's 40th multifamily property closed in Texas.

Dustin Selzer with JLL represented the seller in the transaction. Cadre, a New York based real estate investment manager, provided the equity capital. This is the second joint venture between Cadre and Bascom this year. California Bank & Trust provided the debt financing for the acquisition and was arranged by Brandon Smith, Annie Rice and Jamie Kline with JLL. SD Cap will provide construction management services and Stonemark will be the property manager. James D'Argenio and Chang Liu sourced and managed the acquisition for Bascom.

Developed by Sueba USA, known for building high quality luxury multifamily, the property is very well-maintained, offering functional, large interior floorplans with existing construction and design elements that are ideal for upgrades. The amenity spaces offer sufficient opportunities for enhancement to better serve the needs of current and future residents.

Demand for multifamily in Houston continues to remain strong along with its overall economy. Effective rents across the class "A" market segment increased 6.2% year-over-year through Q3 2022 with the average occupancy settling at 93.1% for stabilized properties. Houston ranks third in affordability compared to the top 30 U.S. metros with a rent-to-income ratio of 18%.

Chang Liu, Acquisitions Director for Bascom, states, "This acquisition continues our Texas strategy of acquiring well located, newer vintage assets with minimal deferred maintenance and value-add potential." Andre Burshe, Director of Operations, comments, "We are excited to acquire a property that offers suburban characteristics, like large floorplans and ample community space, in an urban location. We can elevate the interior design to match the next-generation properties nearby."

About Bascom

Bascom is a 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 extensive 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 $21 billion in multifamily value-added transactions encompassing more than 350 multifamily properties and over 100,000 units. Bascom's commercial transaction volume is $4 billion in total and amounts to over 22 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, 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.

If you would like further information, please call James D'Argenio at (626) 627-7123 or e-mail at [email protected].

SOURCE The Bascom Group