Key Takeaways
- • Bascom I real estate fund delivered 25% average annualized returns over 5.5 years, exceeding original projections and returning $2.41 for every dollar invested by CLA Wealth Advisors clients.
- • CLA Wealth Advisors deployed $30.82 million in client capital into Bascom I, with aggregate expected returns of $74.00 million upon final distribution, representing a $43.18 million gross profit across the fund's lifecycle.
- • Fund capitalized on residential apartment market opportunity identified in 2012, acquiring diversified Class B and Class C apartment portfolios across target markets in California, Rocky Mountains, Southwest, Pacific Northwest, and Southeast regions.
- • Bascom I closed successfully after disposing of final property holdings, providing institutional and individual investors with concrete performance validation in the private real estate investment space during a favorable market cycle.
Summary
CliftonLarsonAllen Wealth Advisors announced the successful closure of Bascom Value Added Apartment Investors, LLC (Bascom I), a flagship real estate private investment fund that delivered exceptional returns for its investor base. The fund achieved a 25 percent average annualized return over its 5.5-year investment period, significantly outperforming initial expectations and demonstrating the efficacy of the firm's private investment selection methodology.
The fund's capital deployment and return metrics underscore its performance strength. CLA Wealth Advisors invested $30.82 million of aggregate client assets into Bascom I, with the fund expected to distribute $74.00 million in total returns upon completion of all final distributions. This translates to a 2.41x multiple on invested capital—a result that substantially exceeded the firm's original projections when the investment was recommended to clients in 2012.
Bascom I was formed by The Bascom Group in 2011 with an initial capital target of $50 million. The fund's investment thesis centered on acquiring a geographically diversified portfolio of Class B and Class C apartment buildings in high-opportunity markets spanning California, the Rocky Mountains, Southwest, Pacific Northwest, and Southeast regions. Tony Hallada, managing principal of CLA Wealth Advisors, attributed the strong performance to disciplined market selection, noting that the firm identified bullish conditions in the residential apartment sector and partnered with operators demonstrating strong track records aligned with the firm's risk and return philosophy.
The successful exit and return profile of Bascom I carries strategic implications for alternative investment allocators evaluating private real estate opportunities. The fund's performance demonstrates that value-add apartment strategies executed during favorable market windows can deliver returns substantially exceeding public market benchmarks, validating the case for institutional and high-net-worth exposure to private real estate as a core portfolio component. Individual investor returns varied based on entry timing and specific fund share class, underscoring the importance of transparent fee structures and performance attribution in private investment vehicles.
The fund's capital deployment and return metrics underscore its performance strength. CLA Wealth Advisors invested $30.82 million of aggregate client assets into Bascom I, with the fund expected to distribute $74.00 million in total returns upon completion of all final distributions. This translates to a 2.41x multiple on invested capital—a result that substantially exceeded the firm's original projections when the investment was recommended to clients in 2012.
Bascom I was formed by The Bascom Group in 2011 with an initial capital target of $50 million. The fund's investment thesis centered on acquiring a geographically diversified portfolio of Class B and Class C apartment buildings in high-opportunity markets spanning California, the Rocky Mountains, Southwest, Pacific Northwest, and Southeast regions. Tony Hallada, managing principal of CLA Wealth Advisors, attributed the strong performance to disciplined market selection, noting that the firm identified bullish conditions in the residential apartment sector and partnered with operators demonstrating strong track records aligned with the firm's risk and return philosophy.
The successful exit and return profile of Bascom I carries strategic implications for alternative investment allocators evaluating private real estate opportunities. The fund's performance demonstrates that value-add apartment strategies executed during favorable market windows can deliver returns substantially exceeding public market benchmarks, validating the case for institutional and high-net-worth exposure to private real estate as a core portfolio component. Individual investor returns varied based on entry timing and specific fund share class, underscoring the importance of transparent fee structures and performance attribution in private investment vehicles.
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