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LOS ANGELES-The Bascom Group LLC, of Irvine, Calif., has purchased the 128-unit apartment community known as the Catalina Apartments from Catalina Ltd. Partnership. The transaction value for the deal was $12.5 million, which translates to $97,656 per unit.

The apartment complex is located at 333 South Catalina St., and was built in 1987. It consists of a five-story building with one and two bedroom apartments units averaging in size at 905 sf. There is a recreation room, sauna, swimming pool and spa. The building is equipped with central heat and air-conditioning, underground parking, elevators, fireplaces and private balconies. Rents range from $700 to $1,175, and the property management is provided by Sherman Oaks-based Stratus Management Inc.

The building was 97% occupied at the time of the sale. The capitalization rate on the deal measured 5.5%. The apartment building sits on a 51,554-sf lot and offers 115,925 sf of gross rentable space. There are currently 147 parking spaces available in the subterranean parking facility, but most of those are tandem. The new owners plan to re-stripe the parking area and hope to increase the parking capacity.

Bascom Group is generally short-term holders of properties, turning around sites within four to five years after significant cost reduction. A representative from Bascom says the company plans to invest $2.25 million in renovations to the building, including interior unit renovations and upgrades, a remodel of the leasing office and hallway upgrades.

One of the cost reduction strategies for the new owners is to push rents that are currently under market and control spending in operations. Otherwise the building is in fairly decent shape, according to a representative from Bascom intimate with the transaction. The Catalina Apartments is composed of 40% one-bedroom and 60% two-bedroom units. The Mid-Wilshire location of the Catalina is situated between the 101, 110 and 10 Interstates, and accessible to Los Angeles, Orange, Riverside and San Bernardino counties.

Representing both buyer and seller was Sandra Park of Wiseman Realty & Investment Co. of Los Angeles. Newman Financial provided debt financing with the assistance of Mark Schultz of Berkshire Mortgage Finance of Irvine, Calif.

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