Originally built in 1972, the 257-unit Highridge Apartments in Ranchos Palos Verdes has been purchased by private equity firm The Bascom Group for $127 million, which works out to $494,163 per unit.
The units themselves have a roomy footprint, with an average of 1,157 square feet, which according to a press release is 21% larger than the South Bay rental submarket average. This is partially due to the fact that Rancho Palos Verdes is not a hotspot for multi-family rental properties—Highridge is one of only three structures with over 100 units in the coastal city, which has a median household income of $236,000.
Although the property has undergone renovations over the years such as the addition of in-unit washers and dryers, two spas and pools, a clubhouse, and a tennis court, The Bascom Group is planning on additional renovations to bring the units up to a “Class A”/resort-style status. “Our focus is on making smart, strategic upgrades that will improve the resident experience while increasing the property’s long-term value,” Senior Vice President of Operations for Bascom Julie Schoenbachler explains. “With these targeted improvements, we are ensuring Highridge remains a top choice for residents who want space, convenience, and a modernized community.”
Rancho Palos Verdes has been in the news recently for its dramatic landslides, which between July and August of 2024 moved by as much as a foot. The perennially shifting soils on the Ancient Portuguese Bend Landslide Complex have forced some local homeowners to vacate their properties, which overlook the Pacific Ocean. However, although the landslide will continue to cause property damage, experts do not expect the hillside to collapse into the sea.
For its part, The Bascom Group is continuing to add real estate to its expansive portfolio, which includes 96 multifamily properties and 15,948 units in Southern California alone. “Few opportunities of scale ever arise in coastal Southern California, and nearly none in Rancho Palos Verdes,” as Joe Ferguson, Acquisitions Manager, explained. “We are excited to convert on this truly generational opportunity.”
