Bascom Group Acquires 249-Unit Build-to-Rent Multifamily Property in Bakersfield for $56.6 Million

The Bascom Group, LLC has expanded its portfolio with the acquisition of Old River Place, a 249-unit build-to-rent multifamily property located in the Southwest submarket of Bakersfield, California. The transaction, valued at $56.6 million or approximately $227,444 per unit, reflects Bascom’s ongoing strategy to invest in high-growth areas despite current market challenges. This acquisition is the group’s sixth in 2024 and its twenty-sixth in California’s Central Valley. Debt financing for the purchase was arranged by Annette Rice and Jamie Kline of JLL, with TPG Real Estate Finance Trust serving as the lender. The property was sold by The Mogharebi Group, represented by investment sales team leader Mark Bonas. Apartment Management Consultants will handle property management, while SD-CAP will oversee construction management.

Old River Place is part of Bascom’s broader acquisition strategy, with the company remaining active in pursuing new investments throughout the United States. To date, Bascom has acquired 130 multifamily properties encompassing over 20,000 units in California, including 25 properties with 3,619 units in the Central Valley. In the past six months alone, the firm has completed approximately $265 million in multifamily acquisitions nationwide.

Joe Ferguson, Acquisition Manager at Bascom, describes Old River Place as a well-constructed community in an affluent area of Southwest Bakersfield. The property includes two-car garages for each unit and private outdoor spaces, which adds to its appeal in a market that continues to experience strong demand for rental housing. Ferguson notes that the rising interest rates and corresponding higher mortgage payments have increased the attractiveness of build-to-rent communities like Old River Place. He also expressed optimism about the Bakersfield market, which shows solid fundamentals and growth potential.

Situated in a desirable part of Bakersfield, Old River Place offers two- and three-bedroom units in a low-density, single-family residential-style community. The property is conveniently located near upscale neighborhoods like Seven Oaks and Hagan Oaks, as well as major retail outlets such as Sprouts, Trader Joe’s, Lululemon, and Target. Additionally, it provides easy access to employment centers like California State University, Bakersfield, and Dignity Health – Mercy Hospital.

Lee Nguyen, Senior Vice President of Portfolio Operations at Bascom, highlighted the property’s consistent rental demand and plans for a strategic renovation. The group intends to update unit interiors with new appliances, countertops, cabinetry, and enhance exterior features and community amenities. Nguyen emphasized that the upgrades would provide residents with an affordable housing option in a desirable area.

Bakersfield remains one of California’s stronger-performing apartment markets, characterized by occupancy rates above 95%. The market benefits from limited new housing supply, significant population growth, and an expanding economy that includes sectors like agriculture, healthcare, energy, manufacturing, and logistics. Bakersfield’s strategic location in California’s San Joaquin Valley makes it a key transportation hub, facilitating the movement of goods and attracting investment from major businesses. Recent developments include Tesla’s plans for a large supercharger station and Wonderful Co.’s expansion of an industrial park, expected to support 50,000 jobs.

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