The Bascom Group Secures $8.5 Million Refinancing for Historic 133-Unit Charleston Apartments in Los Angeles
LOS ANGELES — The Bascom Group has completed an $8.5 million refinancing of The Charleston Apartments, a 133-unit historic multifamily community located at 729 S. Union Avenue in the Westlake neighborhood of Los Angeles, the firm announced Aug. 26.
Marcus & Millichap arranged the debt financing for The Bascom Group. The loan was provided by CalPrivate Bank, represented by Senior Vice President and Senior Relationship Manager Anthony Lopo. Michael Derk, Daizy Gomez, Linsey Farrahi, and Zack Metzner of Marcus & Millichap Capital Corporation structured the transaction.
A Century-Old Asset in a Workforce Housing Market
Built in 1924, The Charleston Apartments is a four-story, mid-rise building constructed of unreinforced brick masonry in a classic U-shaped footprint — an architectural layout common to the 1920s that was designed to maximize airflow and natural light across all units. The property was originally named the Sonora Apartments before being rebranded as The Charleston.
The building comprises 133 apartment units, primarily micro-studios of approximately 200 to 225 square feet, with some larger combined units created by joining two studios. The property retains its original 1924 layout, vintage elevator, and century-old brick character. Distinctive sunken bathtubs from the original construction remain in some units today.
The Charleston operates as one of the more affordable entry-level apartment buildings on the periphery of Downtown Los Angeles. Studio units at the property are listed at approximately $995 per month, and larger combined units at roughly $1,250 per month — well below the broader Los Angeles metro average asking rent of approximately $2,300 per unit. That pricing positions the asset as naturally occurring affordable housing serving cost-burdened renters, single workers, and transit-dependent residents in one of the nation's most supply-constrained rental markets.
Westlake Submarket Context
The Westlake neighborhood, situated on the western edge of Downtown Los Angeles near MacArthur Park, was once known as the "Champs-Élysées of Los Angeles" during the 1920s — a high-society residential district that attracted affluent residents along early streetcar corridors. Over subsequent decades, the neighborhood transitioned into a densely populated, transit-dependent, working-class community.
Today, the Westlake submarket remains one of Southern California's more centrally located rental housing markets, offering residents access to Downtown Los Angeles, Koreatown, major employment centers, and a range of retail, dining, and transit options. Los Angeles multifamily vacancy sits in the mid-5% range at the metro level, while Downtown Los Angeles has seen vacancy closer to 10.9%, making Westlake's smaller, more affordable unit stock comparatively resilient as cost-sensitive renters seek alternatives to newer downtown Class A product. Cap rates across the Los Angeles multifamily market have moved into the high-5% range, reflecting broader repricing in the current debt environment.
The Charleston's micro-studio configuration and below-market rents support persistent renter demand in a city characterized by high rent burdens and low homeownership rates. Property management for the asset is handled by Ingenious Asset Group, Inc., a Los Angeles-based property management and real estate firm offering commercial and residential management and brokerage services.
Bascom's Investment Strategy and Principals
The Bascom Group is a minority-owned private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate-related investments. The firm was founded by principals Derek Chen, Jerry Fink, and David Kim. James Singleton serves as a principal at Bascom and was involved in the Charleston transaction.
Since its founding in 1996, The Bascom Group has completed more than $23.0 billion in multifamily value-added transactions encompassing 368 multifamily properties and more than 94,272 units. The firm's commercial transaction volume totals $5.8 billion across more than 23.4 million square feet. Bascom has ranked among the top 50 multifamily owners in the United States.
Bascom's strategy centers on sourcing value-added and distressed properties — including those through foreclosure, bankruptcy, or short sales — and repositioning them through capital improvements, revenue enhancement, and operational efficiencies via institutional-quality property management.
"We are very pleased with the outcome of this refinancing, particularly given today's challenging debt market environment," said Jim Singleton, Principal at Bascom. "The successful execution of this financing demonstrates the quality of The Charleston Apartments, the strength of its location within Los Angeles, and the continued confidence lenders have in well-positioned multifamily assets."
Lee Nguyen, Principal at Bascom, added: "We appreciate the efforts of Michael Derk, Daizy Gomez, Linsey Farrahi, and Zack Metzner at MMCC in securing a financing solution that supports our long-term investment objectives."
CalPrivate Bank and Marcus & Millichap Capital Corporation
CalPrivate Bank provided the $8.5 million loan for the transaction. The bank was represented by Anthony Lopo, Senior Vice President and Senior Relationship Manager. Marcus & Millichap Capital Corporation arranged the financing on behalf of The Bascom Group.
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