News Summary
The Bascom Group has sold a 112-unit multifamily complex in Downey, known as ‘The Square,’ for $37.6 million. The property, 94% occupied, attracted a private buyer who secured a $25.6 million loan from Freddie Mac for capital improvements. The new owner plans renovations and aims to address housing shortages in the area as Downey develops nearly 300 new housing units over the coming years. Mayor Mario Trujillo highlights the city’s challenges in meeting housing demands, balancing development with quality of life.
Downey – The Bascom Group, a real estate private equity firm based in Irvine, has successfully sold a 112-unit multifamily complex located at 12535 Brookshire Ave. in Downey for $37.6 million. The transaction was facilitated by Northmarq, a well-known commercial real estate service provider.
The property, known as “The Square,” is currently 94% occupied. It is one of nine multifamily buildings in the Downey area that each contain more than 100 units. The sale included a financing arrangement where Northmarq secured a loan of $25.6 million for the buyer from Freddie Mac. This loan carries a seven-year term, with the first four years being interest-only at an interest rate of 5.05%. Mike Smith, the managing director of Northmarq’s investment sales team, noted that the private buyer intends to hold onto the property long-term and has secured the low-rate loan specifically to fund capital improvements.
Since its purchase in 2015 for $25.5 million, The Bascom Group has renovated 71% of the units, enhancing them to include in-unit washers and dryers. The new buyer plans to make initial improvements to the exterior and maintenance of the property, with potential renovations of the remaining units being considered if financially viable.
Smith highlighted that the property is particularly attractive for its large floor plans, which include 43 three-bedroom units, a type in high demand in Downey. The robust investment fundamentals in Los Angeles County have attracted buyers eager to acquire properties in markets with limited development pipelines, as they anticipate strong future rent growth.
Downey’s Housing Landscape
Looking forward, Downey has nearly 300 new housing units planned over the next few years, accompanied by 11 ongoing residential projects at various stages of development. Recent approvals include a 33-unit condominium project and several multi-family buildings, alongside various townhome developments aimed at addressing the ongoing housing shortages in the area.
Downey’s Mayor, Mario Trujillo, has pointed out the challenges posed by California’s statewide housing crisis, characterized by high demand, limited supply, and rising construction costs. The city has responded by passing an inclusionary housing ordinance that mandates that 10% of all new housing units must be affordable or developers are required to pay a fee.
Currently, Downey has a legal obligation under state mandates to plan for 6,525 housing units by 2029. However, the city faces various challenges in meeting this goal, including concerns from residents regarding density and quality of life, particularly near new multi-family developments.
Future Developments and Community Concerns
In light of these challenges, Downey is exploring potential mixed-use developments and identifying underutilized areas for increased density, especially in proximity to transportation hubs. The city aims to strike a balance between fulfilling housing requirements and maintaining the quality of life for its residents.
The recent sale of The Square reflects the positive investment outlook in Downey and signals a strong interest in multifamily properties in the area. With ongoing developments and the city’s strategic initiatives to address housing shortages, Downey is at a pivotal point in shaping its residential landscape for the future.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- The Downey Patriot
- Wikipedia: Housing Crisis
- Star-Telegram
- Google Search: Housing Crisis
- ABC7
- Google Scholar: Housing Development
- Saltwire
- Encyclopedia Britannica: Affordable Housing
- Google News: Downey Housing Development
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
