The Bascom Group Buys Central Valley Multifamily Portfolio

The Bascom Group has acquired Casa de Luna and Casa de Sol apartments, together encompassing 236 units in Fresno, Calif., for $44.5 million, or $188,559 per unit. JLL Capital Markets arranged debt financing for the acquisition from California Bank & Trust.

Built in 1967 and 2006, with limited upgrades throughout the years, the properties provide significant value-add opportunities. Bascom plans to renovate the communities, located at 5175 and 5155 N. Fresno St., with improvements targeting both interiors and exteriors as well as amenities.

The company will also market the properties using new names, signage, and marketing strategies. SD Cap will provide construction management services, while Apartment Management Consultants will assist the buyer with property management.

Central Valley Drives California Growth

Located in California's Central Valley, Casa de Luna and Casa del Sol benefit from a continuous influx of residents relocating from the San Francisco Bay Area in search of a lower cost of living. Fresno County has gained more than 78,000 residents during the 2010s, accounting for an 8.4% uptick over the decade, according to The Fresno Bee.

Fresno’s economy has diversified in recent years. The region is driven by industries such as health care, tech, and logistics, which complement Fresno’s agriculture activity, Bascom’s Senior Vice President & Principal of Acquisitions Jim Singleton said in a prepared statement. The Fresno metro area expanded by roughly 23,000 jobs in the 12 months ending in March, with the unemployment rate reaching 6.7% at the end of the first quarter, according to the U.S. Bureau of Labour and Statistics.

Outside of the current acquisition, Bascom owns 3,521 units in the Central Valley and roughly 20,500 units across California. Over the past year, the company has completed around $1 billion in multifamily investments across the U.S.