IRVINE, CA – The Bascom Group has acquired a two-property, 140-unit multifamily portfolio located in the Northridge neighborhood of the City of Los Angeles. The properties, NMS Northridge and NMS Superior, boast large floorplans consisting of mostly two- and three-bedrooms with each unit receiving a private 2-car garage or two spaces of structured parking.
The properties are centrally-located within the San Fernando Valley and sit adjacent to California State University – Northridge (“CSUN”). CSUN has an enrollment of 38,000 students and provides significant resident demand. Bascom purchased the 140-unit property for $52,500,000, or $375,000 per unit. Brightspire Capital (fka Colony Capital) provided the debt financing for the acquisition and was arranged by Mark Strauss and Rob Quarton of Walker Dunlop Capital Markets. Apartment Management Consultants (AMC) will provide property management services.
Bascom Sr. Principal, Chad Sanderson, states, “NMS Northridge and NMS Superior represent compelling acquisitions in a high-barrier-to-entry market. Market occupancies have been exceptionally high over the last decade and only a limited amount of new supply is currently under construction. Despite the pandemic-related challenges for many universities and the communities serving them over the past two years, we believe the Northridge submarket will see strong fundamental growth over the next several years driven by limited new housing supply and continued population growth.”
The properties are located adjacent to California State University – Northridge, a 38,000-student university within California State University system. Although the properties’ residents are not all students or university affiliates, the properties’ proximity to the university provides consistent demand from a highly educated resident base of students, faculty, and other university affiliates and non-affiliates. Bascom’s Senior Vice President of Operations, Julie Schoenbachler, adds, “The properties are just a short walk across the street from the CSUN student recreation center, which will be an incredible complement to our planned amenity upgrades on the properties. Other property upgrades will include unit interior renovations and a rebrand to appeal to a younger, tech-savvy resident base.”
Joe Ferguson, Acquisitions Manager for Bascom, states, “We are excited to kick off the new year with the acquisition of NMS Northridge and NMS Superior. The properties’ large floorplans and collegial neighborhood provide residents a unique community experience complete with an abundance of amenities and services serving the Northridge submarket and CSUN community. The properties have been very well-maintained and stand to benefit from a targeted renovation program, including washer dryer additions to most units, as well as the implementation of institutional property management.”
The Bascom Group has been one of the most active apartment buyers in Southern California since its inception in 1996, partnering with institutional and private capital. To date, Bascom has acquired 95 multifamily properties and 15,808 units in Southern California, with 39 of those properties and 5,952 units located in Los Angeles County. Over the past year, Bascom has completed over $1.85 billion in multifamily transactions.