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.

Lafayette, California
Renovation Budget
$5.4M ($36,000/ unit)
Debt Partner
John Hancock Life
Equity Partner
Capri Capital/ CALPERS