bascom northwest ventures
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BASCOM NORTHWEST VENTURES, LLC is a
multifamily real estate investment company based
in San Francisco, California. Bascom Northwest
executes its business plan in supply constrained,
urban infill areas and seeks 50+ unit apartment
communities with values between $10 million
and $150 million. The company’s target markets
are Northern California, Washington, Oregon and
Utah. All location types and asset classes are
considered. These opportunities often require quick
action, construction and financing expertise, and
specialized management.
The Bascom Group, LLC, created Bascom
Northwest Ventures when Brian Wirtz joined as
a regional partner. The Bascom Group, founded
by David Kim, Jerome Fink and Derek Chen, has
acquired over $2 billion in multifamily assets
across the United States. Since its inception in
2003, Bascom Northwest Ventures has acquired a
portfolio of over $500 million, representing several
thousand units. The company is named after the
University of Wisconsin’s Bascom Hill, the original
home of UW’s Business School and the top ranked
Real Estate and Urban Land Economics Program,
from which all the founders graduated.
Mr. Wirtz was formerly West Coast Vice President of
Acquisition and Redevelopment with Essex Property
Trust and Avalon Bay Communities, where he led
in the acquisition of over $750 million in apartment
communities. His expertise translated well into the
private sector, as Bascom Northwest continues to
surpass goals and expectations. Property selection,
underwriting, financing, due diligence, disposition
and asset business plans are directed by San
Francisco’s experienced principals and associates.
The Bascom Group directs all tax, accounting, asset
and construction management activities.
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SAN FRANCISCO BAY AREA
SEATTLE
PORTLAND
SALT LAKE CITY
TACOMA
SACRAMENTO
LOS ANGELES
SALEM
SAN DIEGO
PROVO
OGDEN
This property was originally constructed in 1949 and encompasses a full city block
in downtown Seattle’s First Hill neighborhood. Originally named “The Nettleton,” the
property’s two 14 story towers enjoy views of the Puget Sound, Lake Union and
downtown, as well as offer a private parking structure, and downtown’s largest pool.
Bascom Northwest executed an extensive repositioning plan, including the replacement
of the entire electrical and life safety systems. To transform the community into a hip
urban address, dated finishes and unwelcoming dark common areas were replaced
with new glass partitioned interior spaces, bamboo flooring, sleek lighting, and a blast of
vibrant color. Amenities now include a cyber lounge business center, large health club,
new 15 person spa, roof top decks, and a 30 seat private theater attractive to the Gen X
rental market driving Seattle’s economic resurgence.
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PRE-RENOVATION
City
Number of Units
Year Built
Renovation Budget
Debt Partner
Equity Partner
Seattle, Washington
351
1949
$9.6M ($27,350/ unit)
Wells Fargo Bank
Rockwood Capital
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Bascom Northwest acquired Washington State’s second largest apartment community
in 2004 when it was listed by a large public REIT. Built in the late 1980’s, the 36 acre
community was under maintained and capital starved. Bascom Northwest executed
a renovation with emphasis on improving the curb appeal and amenities. Nearly
$2 million was spent on landscaping, community re-branding and expansion of the
amenity package. A dramatic two story leasing facility was created, including a state
of the art fitness center, internet café, 50 seat theater, tanning booths and spa. Now
the community offers an unmatched amenity package in King County. In the midst of
a dramatic market upswing, the original equity partner wished to capture a substantial
gain (net profit of $26 Million), so Bascom Northwest recapitalized the project in 2007
with new debt and equity partners. The second renovation focused on unit interiors, as
the community still lacked upscale apartments consistent with its location and amenities.
The upper portion of the site was designated “The Heights at Club Palisades,” and its
units were upgraded with brand new cabinets, appliances, countertops, floor coverings
and other contemporary finishes.
PRE-RENOVATION
City
Number of Units
Year Built
Renovation Budget
Debt Partner
Equity Partner
Federal Way, Washington
750
1987–1990
Original $4.4M ($5,850/ unit)
2007 Recap $4.1M ($5,400/ unit)
Wells Fargo Bank
Babson Capital (2007)
Lehman Brothers
Rockpoint Group (2007)
In 2005 Bascom Northwest purchased this infill apartment property in the high income
Bay Area community of Lafayette. The site had a tired appearance because of minimal
capital improvements but was surrounded by multimillion dollar homes. The supply
of comparable properties was further constrained when new apartment entitlements
were effectively banned by city planners. Bascom Northwest determined the Class A
market was underserved, and a major renovation package, including seismic retrofit,
was required to complete the repositioning of the asset. The acquisition was further
complicated by the existing loan, which was 50 percent of the property’s value and not
pre-payable. Bascom formed a venture that funded a $15 million down payment and
more than $36,000 per unit in renovation capital. The scope included leasing office and
fitness center upgrades, the installation of in-unit washer/dryers, granite countertops,
new cabinetry and fixtures, as well as new roofs and HVAC units. Rents were increased
by over 35% as a result of the renovations.
LAFA
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PRE-RENOVATION
City
Number of Units
Year Built
Renovation Budget
Debt Partner
Equity Partner
Lafayette, California
150
1973
$5.4M ($36,000/ unit)
John Hancock Life
Capri Capital / CALPERS
CIT
Y PA
RK
Bascom Northwest targeted this owner-managed property for an unsolicited
offer after market surveys indicated the site had very high vacancy and
the lowest rents in the submarket. Formerly known as Lexington Square,
the 14.79 acre site is located blocks from Salt Lake City’s burgeoning
downtown core. The property was encumbered by tax-exempt bonds
and resident income restrictions. Contrary to the owner’s belief, Bascom
Northwest determined the bonds could be defeased and refinanced,
allowing the resident income and rental restrictions to be removed. The
asset repositioning effort included transitioning to a market rate tenant
base while upgrading the amenities and curb appeal for an even higher
income resident profile. A major leasing office renovation included a private
cinema and business center, while new garages and new interior hallway
finishes were also added. Apartment home upgrades included installation
of dishwashers, new appliances and other finishes. In the first year of
ownership, NOI increased 123% over the prior ownership’s performance.
City
Number of Units
Year Built
Renovation Budget
Debt Partner
Equity Partner
Salt Lake City, Utah
418
1973
$2.2M ($5,260/ unit)
Prudential Mortgage Capital
BlackRock Realty Advisors
Located directly across the street from Microsoft’s seven million square
foot campus, Bascom Northwest targeted the property for an unsolicited
offer after research indicated the site had double the submarket’s
vacancy rate and very low rents. The property’s original Canadian
development company had been self-managing the asset for 27 years
with virtually no capital improvements. Through professional third party
management, Bascom quickly leased the property to full occupancy
and instituted a redevelopment plan focused on changing to a higher
income tenant profile. Major renovations were completed to the leasing
center and resident clubhouses, including a new fitness center, resident
activity room, spa and a pool deck expansion. Apartment units were
gutted and upgraded with new cabinets, appliances, fixtures and each
received a washer/dryer combo. After holding for just over two years,
Bascom Northwest sold Stonecreek to a large REIT for a net profit of
almost $10 million.
STO
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K AT B
ELLE
VUE
City
Number of Units
Year Built
Renovation Budget
Debt Partner
Equity Partner
Bellevue, Washington
206
1978
$3.1M ($15,100/ unit)
Babson Capital
Wilson Investment Associates
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Park Lafayette Lafayette, California
Kenmore Estates Kenmore, Washington
Kendall Ridge Bellevue, Washington
Kendall Ridge Bellevue, Washington
Fairway Village San Ramon, California
Fairway Village San Ramon, California
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TIES
Avante Kent, Washington
Avante Kent, Washington
OTH
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PR
OP
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Villa D’Italia Seattle, Washington
City Park Salt Lake City, Utah
Beacon View Seattle, Washington
Greenpointe Salt Lake City, Utah
Bascom Northwest Ventures, LLCSan Francisco, CA
www.bascomnw.com