B
ascom Group, an Irvine‑based private‑equity real‑estate firm, sold its 112‑unit Downey complex, The Square, for $37.6 million. Northmarq brokered the deal, and the property sits at 12535 Brookshire Ave. With a 94 % occupancy rate, The Square is one of nine large multifamily assets in the area that exceed 100 units.

    Northmarq arranged a $25.6 million Freddie Mac loan for the buyer. The seven‑year note carries a 5.05 % interest rate, with the first four years interest‑only, giving the investor a cash cushion to fund upgrades. “Viewing this as a long‑term hold, the buyer secured a low‑rate loan that generates sufficient operating cash to cover capital improvements,” said Mike Smith, managing director of Northmarq’s Beverly Hills investment‑sales team.

    Bascom purchased the building in 2015 for $25.5 million and has since renovated 71 % of the units, adding in‑unit washers and dryers. The new owner plans exterior and maintenance work first, and, if economics remain favorable, will consider renovating the remaining units.

    Smith highlighted the property’s 43 three‑bedroom floorplans as a key draw for residents, noting that the complex satisfies a pressing housing need in Downey. He also emphasized that well‑capitalized buyers are seizing opportunities in a market with limited new‑development supply, expecting robust rent growth in Los Angeles County.

    Bascom’s initial purchase and upgrades positioned the property as a prime long‑term investment where new construction is scarce. Investors who are well‑capitalized can outbid those relying on external funding, reinforcing the attractiveness of established multifamily assets in the region.