The Bascom Group has closed its second fully discretionary real estate investment fund, the Bascom Value Added Apartment Investors II.
The fund has up to USD300m of buying power, with leverage, for value added multifamily acquisitions across an eleven state region.
Bascom principal and fund manager, Chad Sanderson, says: "We had very strong investor interest in our second discretionary fund. Our second fund closed with USD80m of equity, which exceeded our USD75m target. The investor base was again predominantly individual high net worth investors. Overall, the discretionary fund programme has complimented our long-standing institutional equity partnerships."
Since the start of capital raise, the fund has acquired six multifamily properties and has specified another two properties that are expected to close in the first quarter of 2014.
Jerome Fink, managing partner of Bascom, says: "Fund II is designed to acquire individual properties priced between USD8m and USD45m. The main focus of the fund is on class B and C properties that are often outside the typical investment parameters of many institutional investors. Historically, we have been able to find better risk-adjusted returns on value added deals with these characteristics."