Key Takeaways
- • Bascom Value Added Apartment Investors, LLC (Bascom I) closed with a 25 percent average annualized return over 5.5 years, generating $2.41 in returns for every dollar invested—significantly outperforming broad equity market benchmarks.
- • CLA Wealth Advisors deployed $30.82 million of client capital into Bascom I and expects to realize $74.00 million in aggregate returns upon final distribution, representing a $43.18 million net gain.
- • Bascom I acquired a diversified portfolio of Class B and Class C apartments across California, the Rocky Mountains, Southwest, Pacific Northwest, and Southeast U.S. markets, validating CLA's 2012 thesis on the residential apartment sector.
- • The fund's performance demonstrates successful manager selection and sector timing by CLA Wealth Advisors, strengthening institutional confidence in the firm's private investment due diligence and allocation strategy for alternative real estate vehicles.
Summary
CliftonLarsonAllen Wealth Advisors announced the successful close of Bascom Value Added Apartment Investors, LLC (Bascom I), its inaugural real estate private investment fund recommendation, on June 12, 2017. The fund delivered a 25 percent average annualized return over its 5.5-year investment period, with aggregate investor proceeds of $2.41 per dollar invested.
CLA Wealth Advisors committed $30.82 million in client assets to Bascom I and is positioned to receive $74.00 million in total returns, representing a gross profit of $43.18 million once all capital distributions conclude. Tony Hallada, managing principal at CLA Wealth Advisors, attributed the outperformance to disciplined manager selection and market timing. "We were bullish on the residential apartment market when we recommended Bascom I to our clients in 2012," Hallada stated, noting that investors who adopted this thesis exceeded initial return projections.
The Bascom Group, LLC, formed Bascom I in 2011 with a $50 million committed capital target to acquire a diversified portfolio of Class B and Class C apartment properties across multiple geographic regions: California, the Rocky Mountains, Southwest, Pacific Northwest, and Southeast United States. The fund's success underscores CLA's investment framework, which emphasizes identifying market dislocations, partnering with managers demonstrating strong historical performance, and aligning risk-return philosophies with client objectives. The completion of Bascom I provides institutional and individual clients with tangible evidence of the firm's capability to source and monitor alternative real estate investments within the context of comprehensive financial and estate planning strategies.
CLA Wealth Advisors committed $30.82 million in client assets to Bascom I and is positioned to receive $74.00 million in total returns, representing a gross profit of $43.18 million once all capital distributions conclude. Tony Hallada, managing principal at CLA Wealth Advisors, attributed the outperformance to disciplined manager selection and market timing. "We were bullish on the residential apartment market when we recommended Bascom I to our clients in 2012," Hallada stated, noting that investors who adopted this thesis exceeded initial return projections.
The Bascom Group, LLC, formed Bascom I in 2011 with a $50 million committed capital target to acquire a diversified portfolio of Class B and Class C apartment properties across multiple geographic regions: California, the Rocky Mountains, Southwest, Pacific Northwest, and Southeast United States. The fund's success underscores CLA's investment framework, which emphasizes identifying market dislocations, partnering with managers demonstrating strong historical performance, and aligning risk-return philosophies with client objectives. The completion of Bascom I provides institutional and individual clients with tangible evidence of the firm's capability to source and monitor alternative real estate investments within the context of comprehensive financial and estate planning strategies.
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