Bascom Group Invests in Buena Park's Vibrant Apartment Community for $53.125 Million
In a significant expansion of its portfolio, The Bascom Group, LLC has successfully completed the acquisition of Castlewood Park Apartments, a value-added apartment community situated in vibrant Buena Park, California. This strategic investment, valued at $53.125 million, showcases the company's commitment to enhancing living conditions and providing affordable housing options in one of Southern California's most sought-after markets.
Originally constructed in 1963, Castlewood Park comprises 183 units and is designed with a low-density layout, making it an ideal candidate for renovation. The property features spacious floor plans averaging 1,028 square feet, complete with garages for every unit and private yards for approximately 60% of the residences. Set across 8.7 acres and organized in 46 buildings, this garden-style complex promotes a neighborhood-like atmosphere with ample open spaces and minimal disturbances from nearby units. Residents have access to various amenities, including two swimming pools and a leasing center, making it a compelling option for those seeking a cost-effective alternative to homeownership in a market plagued by housing scarcity.
Bascom has ambitious plans to elevate the community through a series of renovations. This will include interior upgrades and the introduction of enhanced amenities, coupled with the implementation of full-time onsite management to further enrich the resident lifestyle. Lee Nguyen, Senior Vice President of Operations at Bascom, remarked, "Castlewood already offers many desirable features, such as generous floor plans, garage parking, abundant green space, and private yards. By modernizing the community while preserving its unique characteristics, we aim to maintain Castlewood as a preferred housing option in North Orange County."
Bascom's history of success in acquiring and repositioning multifamily properties feeds into their confidence in this endeavor. Since its inception in 1996, Bascom has completed over 369 multifamily community acquisitions across 20 states, demonstrating their commitment to enhancing residential environments. The firm focuses on older vintage communities, having invested approximately $110 million in improvements across 44 properties, impacting over 8,000 apartment homes. Tim Whiting, Senior Vice President of Operations, shared insight into the importance of preserving older apartment communities like Castlewood, noting that they play a crucial role in the housing landscape of Orange County. The aim is to make strategic enhancements that elevate the resident experience while simultaneously offering economical housing solutions in a highly desirable location.
Castlewood Park's location is prime, boasting convenient access to major freeways, connecting residents to numerous employment opportunities throughout Orange County and Los Angeles. The surrounding area features a mix of newly constructed properties alongside established neighborhoods, with home values ranging greatly, underscoring the potential demand for the community's offerings.
Chad Sanderson, Senior Principal at Bascom, elaborated on the current market conditions highlighting a trend among institutional investors becoming increasingly selective towards older apartment communities. This creates unique opportunities for experienced operators such as Bascom. "Castlewood represents an opportunity to acquire a durable workforce housing asset at an attractive price point in one of the strongest apartment markets nationally," he stated, adding that well-located vintage properties are being undervalued, creating an appealing acquisition target.
In light of recent economic developments, particularly rising interest rates affecting multifamily markets, Bascom remains steadfast in deploying capital. Since the onset of interest hikes in 2022 and 2023, the firm has acquired 13 multifamily communities totaling over 3,231 units, amounting to more than $930 million. Their strategy includes identifying opportunities across various property types and eras, from the 1960s to new developments completed in 2024.
"The multifamily market has evolved significantly, revealing a complex landscape with numerous investment themes emerging," shared Joe Ferguson, Vice President of Acquisitions. Whether it's newer properties trading below replacement costs or older communities in supply-constrained neighborhoods that are undervalued, Bascom is tapping into an array of investment possibilities during this transitional market phase.
The acquisition of Castlewood Park Apartments marks a significant milestone in Bascom's growth trajectory and commitment to enhancing residential life across Southern California. With plans for renovations and upgrades, Bascom aims to foster a community that not only meets but exceeds the expectations of modern renters, thus ensuring Castlewood's status as a desirable and viable housing option for years to come.
Originally constructed in 1963, Castlewood Park comprises 183 units and is designed with a low-density layout, making it an ideal candidate for renovation. The property features spacious floor plans averaging 1,028 square feet, complete with garages for every unit and private yards for approximately 60% of the residences. Set across 8.7 acres and organized in 46 buildings, this garden-style complex promotes a neighborhood-like atmosphere with ample open spaces and minimal disturbances from nearby units. Residents have access to various amenities, including two swimming pools and a leasing center, making it a compelling option for those seeking a cost-effective alternative to homeownership in a market plagued by housing scarcity.
Bascom has ambitious plans to elevate the community through a series of renovations. This will include interior upgrades and the introduction of enhanced amenities, coupled with the implementation of full-time onsite management to further enrich the resident lifestyle. Lee Nguyen, Senior Vice President of Operations at Bascom, remarked, "Castlewood already offers many desirable features, such as generous floor plans, garage parking, abundant green space, and private yards. By modernizing the community while preserving its unique characteristics, we aim to maintain Castlewood as a preferred housing option in North Orange County."
Bascom's history of success in acquiring and repositioning multifamily properties feeds into their confidence in this endeavor. Since its inception in 1996, Bascom has completed over 369 multifamily community acquisitions across 20 states, demonstrating their commitment to enhancing residential environments. The firm focuses on older vintage communities, having invested approximately $110 million in improvements across 44 properties, impacting over 8,000 apartment homes. Tim Whiting, Senior Vice President of Operations, shared insight into the importance of preserving older apartment communities like Castlewood, noting that they play a crucial role in the housing landscape of Orange County. The aim is to make strategic enhancements that elevate the resident experience while simultaneously offering economical housing solutions in a highly desirable location.
Castlewood Park's location is prime, boasting convenient access to major freeways, connecting residents to numerous employment opportunities throughout Orange County and Los Angeles. The surrounding area features a mix of newly constructed properties alongside established neighborhoods, with home values ranging greatly, underscoring the potential demand for the community's offerings.
Chad Sanderson, Senior Principal at Bascom, elaborated on the current market conditions highlighting a trend among institutional investors becoming increasingly selective towards older apartment communities. This creates unique opportunities for experienced operators such as Bascom. "Castlewood represents an opportunity to acquire a durable workforce housing asset at an attractive price point in one of the strongest apartment markets nationally," he stated, adding that well-located vintage properties are being undervalued, creating an appealing acquisition target.
In light of recent economic developments, particularly rising interest rates affecting multifamily markets, Bascom remains steadfast in deploying capital. Since the onset of interest hikes in 2022 and 2023, the firm has acquired 13 multifamily communities totaling over 3,231 units, amounting to more than $930 million. Their strategy includes identifying opportunities across various property types and eras, from the 1960s to new developments completed in 2024.
"The multifamily market has evolved significantly, revealing a complex landscape with numerous investment themes emerging," shared Joe Ferguson, Vice President of Acquisitions. Whether it's newer properties trading below replacement costs or older communities in supply-constrained neighborhoods that are undervalued, Bascom is tapping into an array of investment possibilities during this transitional market phase.
The acquisition of Castlewood Park Apartments marks a significant milestone in Bascom's growth trajectory and commitment to enhancing residential life across Southern California. With plans for renovations and upgrades, Bascom aims to foster a community that not only meets but exceeds the expectations of modern renters, thus ensuring Castlewood's status as a desirable and viable housing option for years to come.
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