IRVINE, Calif., Feb. 23, 2010 — The Bascom Group, LLC (http://www.bascomgroup.com), a private equity company with an apartment portfolio consisting of 100 properties and 29,442 units nationwide, has successfully increased their portfolio net operating income by an impressive 11.8% or $3.04 million (4th QTR '08 vs. 4th QTR '09). Despite declines in market rents of 8.6%, Bascom's portfolio total income declined only 2.1% from the prior year period. Additionally, Bascom achieved greater success in reducing portfolio operating expenses by $4.31M or a 12.4% decrease from 4th QTR of '08.
Despite negative market conditions that included significant job losses and competition from shadow rental inventory, Bascom minimized revenue declines by reducing resident turnover through the implementation of social outreach programs. These initiatives not only supported resident retention numbers, but also allowed for improved marketing campaigns as prospects were attracted to the convenience of these on-site services. "Many owners discontinued their social outreach programs. We decided to increase the offering of programs at each community. We experienced an increase in resident retention, satisfaction, and referrals," commented David Kim, Managing Partner at Bascom.
Bascom achieved considerable success in reducing portfolio operating expenses. These programs included measures such as: 1) Installing higher efficiency water, electricity, and gas retrofits to reduce utility usage; 2) Appealing assessed property values; 3) Rebidding all vendor contracts; 4) Rebidding insurance and raising deductibles; 5) Implementing longer lasting flooring materials to lower turnover costs; 6) Optimizing marketing channels and dropping low benefit-to-cost services. "Despite a decrease in new acquisition activity, we did not lay off any personnel and instead doubled our efforts on operational improvement. The results, which clearly beat the market, demonstrate that it was successful," commented Jerry Fink, Managing Partner at Bascom.
About The Bascom Group, LLC:
The Bascom Group, LLC is a private equity company specializing in the acquisition, reposition, and management of distressed and value-add multifamily properties. Founded in 1996, Bascom has acquired more than 50,000 units and has completed more than $6.0 billion in total transactions. To find out more, please visit http://www.bascomgroup.com
Contact:
Michelle Khuu
Tel: (949) 955-0888 ext.27
E-mail: Email
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