IRVINE, Calif., July 15, 2011 /PRNewswire/ -- The Bascom Group, LLC, a leading national apartment investment firm, has completed a total of $566 million in renovations on 206 multifamily communities since 1996. Aggregated, the actual completed renovation costs for the portfolio are below their original allocated budgets. These renovations have included interior and exterior upgrades ranging from single fixture replacements to exterior facade enhancements. The renovations have also included significant work to correct deferred maintenance.
"This milestone is a testament to the team's experience and knowledge of renovations. We have also developed excellent working relationships with third party construction management, property management, and design firms skilled in value-added apartment renovations. The quality of the end product has resulted in a number of awards, including winning Best Apartment Renovation twice in the past five years," noted David Kim, Managing Partner for Bascom.
The construction process can take anywhere from one to two years, depending on the intricacy of the budget and scope. The first year is focused on completing exterior value-add renovations and addressing deferred maintenance issues, such as amenity improvements/additions, landscaping, curb appeal, exterior painting, utility retrofits, and structural issues. Interior renovations also begin during the first year and can continue throughout the first few years of acquisition, with resident turnover being a main factor. A typical interior renovation includes carpet and flooring replacements, re-paint, fixture enhancements, and countertop and appliance improvements.
"The Great Recession and its impact on operating cash flow has created significant opportunities for value-add firms such as Bascom. There has been a wave of foreclosures, bankruptcies, and short sales in the multifamily industry, especially the older properties in the southwest and southeast. Many owners have elected to defer capital improvement projects either out of choice or necessity," added Jerry Fink, Managing Partner for Bascom.
About The Bascom Group, LLC:
Bascom (http://www.bascomgroup.com) is a private equity firm headquartered in Irvine, California, specializing in value-added multifamily real estate investments. Bascom sources value-added apartment properties and repositions them by adding extensive capital improvements and reducing expenses by realizing operational efficiencies through the implementation of institutional-quality property management. Bascom has completed transactions totaling over $6.3 billion acquiring nearly 55,000 units and more than 200 properties. Bascom has been an active buyer of value-added and distressed multifamily properties in receivership, foreclosure, and bankruptcy. Target markets have included California, Colorado, Washington, Hawaii, Nevada, Arizona, Utah, Georgia, and Texas. Bascom, through its joint ventures with the Southern California Industrial Fund LLC; Real Group, LLC; and Rushmore Properties, LLC, has acquired more than 2.0 million square feet of commercial properties nationwide.
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SOURCE The Bascom Group, LLC